Selling
Gray Divorce: Selling the House in Colorado
Colorado divides marital property equitably, not automatically 50/50.
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Colorado divides marital property equitably, not automatically 50/50, and the court weighs who gets the family home as part of each spouse's economic situation (C.R.S. 14-10-113). The two paths are to sell and split the net proceeds, or for one spouse to buy out the other. For taxes, your spouse's ownership time counts toward your 2-of-5-year test (IRS Publication 523).
How does Colorado divide the house?
- Courts divide marital property in the proportions they find just, without regard to marital misconduct (C.R.S. 14-10-113).
- Property owned before the marriage, or received as a gift or inheritance, is separate property.
- An increase in value of separate property during the marriage is marital property.
Can either spouse list the house during the case?
- Filing starts an automatic temporary injunction. Neither spouse transfers or sells property without the other's written consent or a court order (C.R.S. 14-10-107).
- Get both signatures, or a court order, before listing.
Sell or buy out?
- A buyout needs a refinance in one name, approved on one income.
- Both sides need a value. A Smart Pricing Report or an appraisal sets it.
- Selling splits the net and ends joint debt on the home.
How do capital gains work in a divorce?
- Sold while married filing jointly: up to $500,000 excluded.
- Sold after the divorce: each owner has up to $250,000.
- If the order lets one spouse live in the home, the other still counts that time as use (IRS Publication 523, 2025).
- This is not tax advice. Your CPA runs your numbers.
What if one spouse wants to keep the house?
- The spouse who stays refinances to take the other off the loan.
- The court weighs who gets the home against the other assets (C.R.S. 14-10-113).
- Taxes, insurance and upkeep on a large home fall on one income.
- Run the numbers with {{MIKE}} and your financial advisor before you agree.
How do we run a neutral sale?
- One point of contact who updates both spouses and both attorneys the same way.
- A price both sides sign off on, based on recent sales.
- Costs and proceeds split per the decree or court order.
Financing by Rate: Mike Oswald, VP of Mortgage Lending, NMLS #261003, (720) 677-5816. Guaranteed Rate, Inc. d/b/a Rate, NMLS #2611. Equal Housing Lender. Licensing: nmlsconsumeraccess.org. You may use any lender; the Kenna Real Estate Group receives nothing for the introduction. Not a commitment to lend; loans are subject to credit approval.
Quick answers
Questions, answered.
Is Colorado a 50/50 divorce state?
No. Colorado divides marital property equitably, meaning in just proportions, not automatically equal (C.R.S. 14-10-113).
Can I sell the house before the divorce is final?
Yes, with both spouses' written consent or a court order (C.R.S. 14-10-107).
Who pays the capital gains tax after a divorce sale?
Each owner reports their share. Talk to your CPA before you pick the closing date.
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- One point of contact from the first showing to the closing table.
Kenna Luxury Real Estate is a division of the Kenna Real Estate Group at Keller Williams DTC (KWDTC).