The home is often the center of family life. It is often where holidays are celebrated, the kids learn to ride their bikes and memories are made. It also represents a significant financial investment for a Colorado couple. As a result, when couples decide to divorce, what to do about the home often becomes a complicated issue.
In some instances, one of the individuals may decide that he or she wants to keep the home. This is often prompted by the desire to minimize a disruption to the children's way of life. However, prior to deciding that this is the best alternative, the individual will want to analyze the financial impact this will have on the budget post-divorce. Is this a practical solution or will it lead to financial problems down the road?
If the individual does decide to keep the home after the divorce, it will likely be necessary to refinance the mortgage. This will allow the home to be titled in the individual's name and the other spouse to be removed from the mortgage. However, this option is only appropriate if the individual has the income and credit to qualify for the new mortgage. There are some instances where it may be advantageous to look to alternative forms of cash and/or income to make this work.
There is no one-size-fits-all solution to the house dilemma when it comes to divorce. Each individual will want to discuss the situation with his or her legal counsel prior to making a final decision. This is perhaps ones of the largest financial decisions related to the Colorado divorce and should be based upon sound financial principles rather than emotion.