The family home is where memories are made that will last a lifetime. From carrying the bride over the threshold, to birthday and holiday celebrations and more, people in Colorado can become very attached to the family home. That may be why it is such a hotly sought-after asset should a couple divorce. However, it is important to understand what keeping the family home after a divorce entails.
If a party is awarded the family home in the property division process, they may want to refinance the house so that it is in their name only. This means that their single income must be sufficient to qualify for refinancing. If a family home remains in both parties’ name post-divorce, both parties are responsible for the mortgage payments despite what a divorce decree may say. Refinancing is important, because the party who didn’t retain the home after the divorce could still be on the hook if the party that did retain the home stops making mortgage payments.
Also, owning a home means not only paying the mortgage, but also property taxes, homeowners insurance and maintenance on the house. It is important to determine if one can afford this before deciding to go after the home in the property division process.
Thus, there are financial reasons why a person might not want to keep the family home after a divorce. Some may even find that the idea of staying in the home where their marriage crumbled and failed is undesirable. Sometimes, both parties want a fresh start post-divorce. Therefore, they may decide to sell the family home and split the proceeds.
Unfortunately, sometimes a couple owes more on the mortgage than what the value of the house is. When this happens, couples may want to consider a short sale of the home, renting the home or even continuing to reside together in the home. While these might not be the most desirable options, some couples may find they are right for them, at least temporarily.
When it comes to property division and the family home, divorcing couples have many options. Divorce can be a very emotional time, and sometimes it is hard to step back and look at the big picture. However, it is important that when it comes to the family home, couples make rational choices, as deciding what to do with the family home can affect their lives for years to come.