If you live in the Denver metropolitan area, you may love driving into the high country to spend some quiet time away from the city. Purchasing a vacation property in Aspen, Vail, Crested Butte or anywhere else in the Centennial State allows you to have the comforts of home in a scenic location.
Like other marital assets, you must address ownership of your second dwelling during your divorce. While Colorado law provides for equitable distribution of the marital estate, you may encounter three challenges when it comes to dividing your summer or winter property.
1. An unwillingness to part with the property
With housing prices skyrocketing in most places in Colorado, purchasing another vacation home may be out of reach for you and your soon-to-be ex-spouse. If neither of you wants to part with the property, you may be able to come up with a joint-ownership agreement and usage schedule.
2. Drastically different appraisals
Commonly, divorcing spouses choose to sell secondary residences and split the proceeds. If you and your husband or wife want to put your getaway on the market, you may need to agree on the listing price. Regrettably, because of the nature of the second-home market, you and your spouse may receive drastically different appraisals.
3. A limited pool of buyers
Depending on the location, condition and features of your holiday house, it may be one of the more valuable assets you and your spouse own. Even if you want to sell the property, recent appreciation may make it too expensive for many buyers. With a limited pool of buyers, it may take longer to sell the home and finalize your divorce.
Ultimately, to ensure you make the right decisions regarding your vacation property, you may want to put an experienced realtor and appraiser on your divorce team.