Selling a House During Divorce in Denver, Colorado

So what does it take for a homeowner going through a divorce to sell a house in Denver, Colorado? This page is an informative resource for anyone dealing with divorce and trying to understand what happens to the home. It will explain how property division works in Colorado, what your options are if you need to sell, and how you can navigate the often tricky process of selling a house during divorce while still protecting your equity and your financial future.

Introduction

If you are reading this, it is likely that you are going through a divorce or separation and trying to understand what will happen to your home and how it will affect you. First, I offer my sincere acknowledgment of how heavy this can feel. Divorce is not only emotionally painful — it can be mentally exhausting, physically draining, and financially stressful.

On top of that, trying to figure out what to do with the house can feel overwhelming. Who gets to stay? Who gets the equity? Can we sell before the divorce is final? What if we don’t agree?

My hope is to make this easier for you by providing clear, practical information about selling a house during divorce in Denver, Colorado so that you can make the best decisions for yourself and your family. In this writing we will cover the divorce and property process at a high level, with emphasis on what to do with the real property (real estate) associated with the marriage.

Most people have never been through this before. Understanding terms like marital property, equitable distribution, and buyouts is not something most divorcing couples are familiar with. We have worked with many families over the years and found that it is a learning process from start to finish. When given the right information and encouragement early in the process, they were able to make better decisions with greater confidence.

To that end, we hope you find this helpful and that it enables you to make the best choices for your situation.

How Property Is Handled in a Colorado Divorce

When you divorce in Colorado, the law treats your house and other assets under a system called equitable distribution. This is very important to understand.

Colorado is not a 50/50 “community property” state.
Instead, Colorado uses equitable distribution, which means property is divided in a way that is fair — but not necessarily equal.

The court generally divides property into two categories:

Marital Property

Most assets acquired by either spouse during the marriage are considered marital property, regardless of whose name is on the title or deed. In many cases, the home you live in together is marital property.

Separate (Non-Marital) Property

This may include:

Property owned by one spouse before the marriage
Assets received as inheritance or a gift to only one spouse
Certain personal injury awards

However, if separate property was mixed with marital finances (for example, using marital income to pay the mortgage or remodel the home), a portion of its value might be treated as marital.

When deciding how to divide the equity in a home, Colorado courts consider factors such as:

Each spouse’s contribution to the acquisition and maintenance of the home
The value of the property set apart to each spouse
The economic circumstances of each spouse at the time of division
Whether one spouse will have primary responsibility for children who’ll continue living in the home
Each spouse’s income and earning capacity

The main takeaway: the house is usually treated as marital property, and the court or your settlement agreement must decide what happens to its value.

Can a House Be Sold While Going Through Divorce?

Yes, it can.

Depending on your situation, the house in Denver can be:

Sold by joint agreement between spouses
Ordered to be sold by the court if you cannot agree
Retained temporarily by one spouse and sold later
Transferred to one spouse with a buyout arrangement for the other

Once you and your spouse (or the court) decide that the home should be sold, the next step is figuring out how to sell, when, and for how much — and then how to divide the proceeds.

What Does It Take to Sell a House in Denver, Colorado During Divorce?

An important responsibility during divorce is to preserve and fairly distribute the marital estate. When a house is your largest asset, how you handle it has a significant impact on both spouses’ futures.

Sometimes, financial realities force a sale. For example:

The mortgage is too high for either spouse to afford it alone.
There is significant equity that both parties need to move on.
The house needs repairs neither spouse wants or can afford to handle.
Joint debts must be paid, and the home is the primary source of value.

Here’s a simple example:

A couple in Denver owns a home worth $550,000 with a mortgage balance of $380,000. They also have $20,000 in credit card and personal loan debt tied to the marriage. After selling and paying off the mortgage and agreed debts, the remaining equity is split according to their settlement or court order. This might be close to 50/50, or it might be adjusted based on income differences, custody, or other factors.

A house may also be sold if neither spouse wants to remain in the property, or if it is more practical for both to downsize and start fresh separately.

High Level Steps for Selling a House During Divorce

If you own a property in Denver and you’re stuck trying to decide what to do with it during divorce, there is a path forward. While every situation is unique, the process of selling a house during divorce in Colorado typically involves several key steps.

1. Clarify Legal Authority and Agreement

First, you need to determine:

Who is on the deed and the mortgage
Whether there are any temporary orders from the court about the house
Whether both spouses agree to sell
Whether the court must approve the sale

If you and your spouse cooperate, you can usually sign a written agreement outlining how the house will be sold and how the proceeds will be divided. If you cannot agree, your attorneys and the court may become more involved, and in some cases, the judge can order the sale.

2. Decide How to Sell the Property

You generally have three main options:

Traditional Listing With an Agent

You hire a Denver real estate agent, clean and prepare the home, make repairs, show the property to buyers, and list it on the open market. This may produce a higher price, but it often takes longer and requires cooperation between spouses.

For Sale By Owner (FSBO)

You attempt to sell it yourself without an agent. This can save on commissions, but it usually requires a lot of time, coordination, and negotiation skills — not ideal when emotions are high.

Direct Sale to a Real Estate Investor

You sell directly to a local house-buying company like Rocky Mountain House Buyer. This option:

Lets you sell as-is, with no repairs
Avoids showings and staging
Can close quickly, often in days or weeks
Eliminates agent commissions and many closing costs

For many divorcing homeowners, a direct sale is the simplest, least stressful way to divide the equity and move on.

Valuation or Appraisal

Before you sell, you will likely need to know what the property is worth. This can be done by:

Getting a comparative market analysis (CMA) from a real estate agent
Hiring a professional appraiser
Comparing recent sales of similar homes in your area of Denver

In some cases, especially if the court is heavily involved, you may need a formal appraisal. The goal is to ensure that neither spouse is taken advantage of and that the equity is divided fairly.

Listing the House or Arranging a Direct Sale

Once you know the value and have agreed on how to sell, you can proceed.

If using an agent, you’ll sign listing paperwork. Both spouses typically must sign, or whoever has legal authority granted by the court.
If selling to an investor like Rocky Mountain House Buyer, you’ll provide basic property information and receive a cash offer, often very quickly.
In either case, the method of sale and the expected sale price should align with your overall divorce plan or court expectations.

If your situation involves a lot of conflict or time pressure, a direct, as-is cash sale can prevent further fighting about repairs, showings, pricing, and timelines.

Offers

Whether you list the home or work directly with a buyer, eventually you’ll receive one or more offers.

When evaluating offers during divorce, think about:

Do you need a fast sale to meet a court deadline or pay off joint debt?
Would you prefer a higher sale price even if it means waiting longer?
Is the home in a condition that might scare away traditional buyers but still be attractive to an investor?
How will delays impact attorney’s fees, mortgage payments, or your stress level?

Clarifying your goals for the sale will help you choose the offer that best supports your long-term interests.

Closing and Distribution of Proceeds

Once an offer is accepted:

The buyer completes their inspections or due diligence (if any).
Title is checked for liens, judgments, or other issues.
The mortgage and any agreed debts tied to the home are paid off at closing.
The remaining equity is distributed to each spouse according to the divorce decree or settlement.

In some situations, the court may require that funds go to an attorney’s trust or be held temporarily until all issues are resolved. Your attorney can guide you through these details.

Should You Handle the Real Estate Part Yourself?

Whether to handle the sale on your own or get professional help depends on:

How complex your finances are
Whether there is high conflict between spouses
How comfortable you are with contracts, disclosures, and negotiations
Whether you need to move fast

Some couples with a simple situation and good communication might handle more of the process themselves, but in many divorces, coordinating the sale of a house can quickly become overwhelming.

A few things to consider:

Real estate agents can help with pricing, marketing, and negotiations, but they charge commissions and may require repairs and showings.
Attorneys are crucial for legal protection, especially if there is any disagreement about ownership, equity, or timing.
Investors like Rocky Mountain House Buyer can simplify the sale itself by purchasing the house directly for cash, often bypassing many of the hassles that trigger conflict.

Even if you decide to sell directly for cash, consulting with an attorney about your rights and obligations during divorce is highly recommended.

Mistakes to Avoid When Selling a House During Divorce

Moving Too Quickly

Accepting the very first offer without understanding your equity or the home’s value can cost you money you may need later.

Waiting Too Long

Delaying the sale while mortgage payments, taxes, utilities, and attorney’s fees continue to pile up can eat away at your equity and increase stress.

Not Understanding Colorado Disclosure Requirements

Colorado has real estate disclosure laws that require sellers to disclose known material defects. If neither spouse has lived in the home recently or you’re uncertain what must be disclosed, it’s important to get guidance from an experienced real estate professional or attorney.

Failing to Get Legal Advice

Even if you think your situation is simple, divorce and real estate can have hidden legal and tax consequences. A brief consultation with a knowledgeable attorney can save you from costly mistakes.

Letting Emotion Drive Every Decision

Divorce is emotional, and the home often holds a lot of memories. But hanging onto the house purely for sentimental reasons — when it’s not financially sustainable — can create long-term problems.

Who Buys Houses During Divorce?

We do.

Rocky Mountain House Buyer is a local, direct home-buying company that purchases houses in and around Denver for cash. We’ve built our reputation on buying houses:

In any condition
With or without repairs
With timelines tailored to the sellers’ needs
With no agent commissions and often no traditional closing costs

If you’re going through a divorce and feeling overwhelmed about what to do with your house, we can help you:

Get a clear, straightforward cash offer
Avoid showings, repairs, and cleaning
Close on a timeline that works with your divorce process
Reduce the stress and uncertainty around the property so you can focus on rebuilding your life

Colorado Divorce & Real Estate Definitions

Here are some key terms that may be helpful as you navigate this process:

Marital Property: Assets acquired by either spouse during the marriage, generally subject to division.
Separate Property: Assets owned before marriage or received by gift or inheritance by only one spouse.
Equitable Distribution: Colorado’s system of dividing marital property fairly, though not always equally.
Decree of Dissolution: The final court order ending the marriage and setting out property division terms.
Buyout: When one spouse keeps the house and pays the other spouse for their share of the equity.
Quitclaim Deed: A document used to transfer a spouse’s ownership interest in the property to the other.
Temporary Orders: Court orders during the divorce process that can address who lives in the home, who pays the mortgage, and other short-term issues.
Court-Ordered Sale: When the court requires the property to be sold because the spouses cannot agree or because it is necessary for a fair division of assets.

It’s important to note that these definitions are general and there may be nuances in Colorado law. Consulting a legal professional experienced in Colorado family and real estate law is advisable for precise guidance.