When a divorce is entered into amicably in Colorado, parties may be better able to assess their future. Property division could be part of this assessment, and parties may be able to discuss this process more openly and determine how they will be affected financially after decisions have been made. Depending on how state laws also affect the division process, individuals may be able to find out more about how taxes on that property will also come into play.
One of the most common pieces of property that holds a considerable amount of weight during the division process is the home shared by the couple. Typically, one party maintains ownership of the home, while the other party moves to a different residence. In this case, the division could be considered a transfer of assets and may not be taxable.
However, there could be instances in which both individuals maintain ownership of the home, but only one party lives in it. If both parties are continuing to own the home, the payments made by the individual not living in the home could potentially be considered part of the alimony or other financial arrangements that are required from that ex-spouse. This situation may also affect the tax situation surrounding the home.
Maintaining ownership of a home after a divorce may be a strong desire for one spouse over the other. If the situation is being discussed on favorable terms, the property division process may go more smoothly and allow fair negotiation as to who maintains ownership of what. Concerned parties may wish to know how property division is handled in Colorado to better understand how to go about dividing their assets in the best way.
Source: nerdwallet.com, “Divorce: Making Sense of the Confusion“, J. Kevin Stophel, June 3, 2014