Should I Keep the House or Sell It After My Divorce in Erie, Colorado?

Should you keep the house or sell it after your divorce in Erie, Colorado? There is no one right answer, and the best choice usually comes from three things: what you can afford on your own, what the law and your agreement allow, and what you want your next chapter to look like. I can help you see the real estate side of that choice in plain numbers, so you are deciding with facts and not fear.

If you are asking this question, you are probably tired. The house holds years of memories, and it is also the biggest thing you and your spouse own together. That is a lot to carry in a hard season, and nobody expects you to know the answer today.

I'm Carol, and Homes by Carol is my real estate practice here in Erie. Carol Vanlandingham is a REALTOR® with eXp Realty and a buyer's and seller's agent in Erie, Colorado, with about 80 homes closed for buyers and sellers and a 5.0 rating on Google. She helps people through life transitions, downsizing, first homes and relocation across Erie, Boulder County and Northern Colorado. I have lived in this area for over 31 years and I have been licensed for 10. Before that, I fixed and flipped houses, so I know what a home costs to keep up, not just what it sells for.

One thing first. I am not an attorney, a lender or an accountant. Who gets the house, how it is divided and what it does to your taxes are questions for your attorney, your mediator and your accountant. What I can do is show you what the home is worth, what it would cost to keep, and what selling would leave in your hands.

Keeping the house is a real option for some people. It is worth a close look before you say yes, because the feelings tied to a home can run ahead of the numbers. Start with these questions:

• Can you afford the house on one income? Add up the monthly cost, not just the mortgage. Include property taxes, insurance, HOA or metro district dues if there are any, utilities, lawn care, snow removal and repairs.
• Will a lender approve you on your own? If one person keeps the home, the loan often has to be moved into that person's name. Your lender is the right person to tell you whether you qualify. Ask before you build a plan around staying.
• What would you need to pay your spouse for their share? That is a legal and financial question for your attorney. I can give you a realistic value for the home, which is the starting point for that conversation.
• Does the house still fit your life? A home that worked for two people, or for a full household, can feel too big, too far or too much work for one person.
• Will staying help you heal, or keep you stuck? Some people find comfort in the familiar. Others find that every room is a reminder. Neither is wrong.

Selling frees you from the monthly costs and gives each of you a clean place to start. It also means leaving a home you know, so it deserves care.

When I work on a divorce sale, I work for the sale of the home. I don't take sides. You both get the same information at the same time, in writing, so no one is hearing things secondhand. I walk you through the comparable homes one by one, including the homes yours would compete with, so the price comes from the market and not from either person. I also put together an estimate of what the sale would likely leave after commissions and typical closing costs, at several different prices. How that money is divided is between the two of you and your attorneys.

You can read more about how I handle this on my page about selling a home during divorce, or in my guide to how to sell a house during a divorce.

Here is the order I suggest. You can take it as slowly as you need.

Step 1: Talk to your attorney or mediator first

Before you decide anything about the house, find out what your agreement or court order allows, and whether there are rules about timing. Whether to sell before or after the divorce is final can affect your settlement and your taxes, so that question belongs with your attorney and your accountant. Once you have an agreement or an order, I follow it.

Step 2: Find out what the home is worth

Every choice starts with a number. A free home value report from me gives you a price range based on real comparable homes. If your attorney or the court wants a formal appraisal, that is a separate step done by a licensed appraiser, and I can explain how the two differ.

Step 3: Write down what keeping the house would cost each month

Use the list above. Be generous with repairs, because older homes have a way of asking for money at the worst time. If you have owned the home for a long time, think about the roof, the furnace, the water heater and the windows. Ask yourself what you would do if one of them failed this year.

Step 4: Ask a lender what you qualify for

If you are leaning toward keeping the house, call a lender early. I have a list of lenders I recommend, and you are free to use anyone you choose. The lender can tell you whether the numbers work before you spend months hoping they will.

Step 5: See what selling would leave

Ask me for the estimate of what a sale would likely leave at a few different prices. Put it next to your monthly cost list. Seeing both on one page often makes the answer clearer than any amount of worry.

Step 6: Picture your next home

Where would you live if you sold? A smaller home, a different part of Erie, Longmont or Boulder, a place closer to work or to the people who help you? When you can picture the next place, selling stops feeling like a loss and starts to feel like a choice. You can read about Erie or ask me about any town in Boulder County.

Step 7: Decide on a timeline you can live with

Some people need to move quickly. Others need time. Tell me which one you are, and I will plan around it. You do not have to decide on the first day.

These are the ones I see most.

• Deciding with your heart only. The home may feel like the last piece of stability. That feeling is real, but it needs to sit next to the numbers.
• Deciding with the numbers only. The cheapest answer on paper is not always the right one. Peace of mind counts too.
• Guessing what the house is worth. A number from a neighbor, an old listing or an online estimate can be far off. Use real comparable sales.
• Forgetting the cost of one person doing it all. The yard, the repairs and the bills used to be shared. Count them again.
• Skipping the lender conversation. Many people plan to keep the home and then learn they do not qualify on their own. Find out early.
• Letting one person make every decision. If the two of you are working through this together, you each need the same facts. I send both of you the same information, so nothing gets lost.
• Rushing because of a deadline you set for yourself. Information first, decisions later.

This happens often. One person wants to stay, and the other wants to be done. When there is a disagreement about price, I show you both the same comparable homes and the same estimate, so the conversation is about the market and not about each other. I have written about this in how to agree on a price for a house during a divorce. If you need a legal answer about who has the right to decide, that is for your attorneys.

If it would be more comfortable for one of you to work with a different agent for the next home, I understand, and I'm glad to recommend someone.

It will be a conversation, nothing more. I listen first. I ask what you are trying to protect and what you are hoping for. Then I explain your options in plain words and show you the numbers. You may leave knowing what you want to do, or you may leave knowing what to ask your attorney and your lender. Either is a good outcome. My job is to make sure you understand every option well enough to choose with confidence, and you make the decision.

Can I keep the house after a divorce in Colorado?

Sometimes. It depends on your agreement or court order, on whether you can afford the costs on your own, and on whether a lender will approve you. Your attorney can tell you what is allowed, and a lender can tell you whether you qualify. I can tell you what the home is worth and what it would cost to keep.

Should we sell the house before or after the divorce is final?

Timing can affect your settlement and your taxes, so that question belongs with your attorney and your accountant. I can tell you what the market looks like and what your home would likely sell for at either point.

How do I know what my house is worth right now?

Start with a free home value report. It is built from real comparable homes. If you need a formal appraisal for a legal reason, a licensed appraiser does that separately.

Do we both have to agree to sell?

That is a legal question, and the answer depends on how the home is owned and on any court orders in your case. Your attorney is the right person to ask. Once you have an agreement or an order, I follow it.

Can you work with both of us if we are not speaking?

Yes. I can talk with each of you separately and send the same written updates to both, so you each have the same facts without needing to talk to each other.

If you are trying to decide whether to keep the house or sell it, I would be glad to help you see both paths clearly. Start with a free home value report, or read how I handle the whole selling process. When you are ready to talk, send me a note or call me at (303) 522-3130. Information first. Decisions whenever you are ready.