You might be more worried about losing your home than almost anything else in your divorce. The house holds your kids’ bedrooms, your routines, and often the biggest chunk of your net worth. In Colorado Springs, where housing costs feel higher every year, the idea of being forced to sell or move can feel like one more hit at a time when everything already feels unstable.
Many people in your position have the same questions. Can I afford to keep the house on my own. Will the judge let us stay until the kids finish school. What happens if my spouse wants to sell right now. Divorce housing issues are not just legal questions, they are practical questions about payments, credit, and what you can realistically handle in the next 6 to 24 months.
At The Gasper Law Group, we handle divorce and custody cases across Colorado Springs and Southern Colorado, including many where the marital home is the most stressful issue in the case. We regularly help both civilian and military families around local bases think through selling, refinancing, or buying out a spouse in a way that fits their finances and their children’s needs. In this guide, we will walk through how Colorado law treats your home and what real options usually look like in practice.
How Colorado Divorce Law Treats Your Home
Before you can decide what to do with the house, you need to know how Colorado courts see it. Colorado is an equitable division state. That means the judge divides marital property in a way that is fair under the circumstances, not automatically 50/50. In many marriages, the home and the mortgage are considered marital property, even if only one spouse’s name is on the loan or the deed.
Marital property is, in general, property either spouse acquired during the marriage that is not clearly separate, such as some inheritances or assets owned before the marriage. If you bought your Colorado Springs home after you got married, any equity is usually marital, regardless of who is on title. If one spouse owned the home before marriage, the increase in equity during the marriage may be partly marital and partly separate, which can get more complex in practice.
Equitable division of a house typically starts with figuring out equity. If your home is worth 500,000 dollars and you owe 350,000 dollars on the mortgage, there is 150,000 dollars of equity. A court could decide that each spouse is entitled to half, or it could adjust that split based on factors like each spouse’s earning ability, other assets, or separate contributions. It is not a fixed formula, and judges in El Paso County look at the whole picture, not just one number.
Another common assumption is that the parent who has the children most of the time automatically gets to keep the house. In reality, judges consider stability for children, including staying in the same school district, but they also weigh whether either spouse can realistically afford the house long term and how keeping the home affects the overall division of property and debt. We have seen cases where the primary residential parent keeps the home, and cases where selling and moving was still the best outcome for that family once all the numbers were on the table.
Because we routinely work with families in Colorado Springs courts, we see how different judges tend to approach temporary possession of the home, equity division, and pressure to avoid long-term joint debt. We use that day-to-day experience to help you build a proposal that is grounded in what courts in this area are likely to see as fair, instead of relying on myths about “automatic” outcomes.
Can You Afford To Keep The Marital Home After Divorce?
Wanting to keep the house is completely understandable. It is often the place where your kids feel safest, and giving it up can feel like losing one more piece of your life. The hard question we walk through with clients is whether keeping the home is actually sustainable once you move from two incomes to one, or when support obligations change how much cash you have each month.
From a lender’s perspective, the key question is not just whether you can scrape together the current mortgage payment. Lenders look closely at your debt-to-income ratio. They compare your total monthly debt obligations, including the new mortgage payment, car loans, credit cards, and support you pay, to your gross income. If that ratio is too high, the refinance may be denied, even if you feel you can “make it work” by tightening your budget.
Child support and maintenance (spousal support) also affect this analysis. If you will receive support, some lenders will count that as income, but often only after you have a history of receiving payments for a certain number of months, and only if the support is expected to continue for a specific period. If you will pay support, those payments usually count as debt. That means a spouse who thinks they will easily qualify because they have a good job can discover that new support obligations push their ratios beyond what a lender will accept.
On top of the mortgage, you need to plan for property taxes, homeowner’s insurance, utilities, repairs, and possibly HOA dues. In many Colorado Springs neighborhoods, those additional costs add several hundred dollars a month or more. Clients often focus on the principal and interest payment, then struggle later when a roof replacement, furnace problem, or HOA assessment hits a single income hard. These are exactly the kinds of details we talk through with you before you lock yourself into keeping a house that might quietly drain your finances.
A frequent problem arises when spouses agree in a divorce decree that one of them will refinance within a certain time, say 6 or 12 months, without confirming with a lender that a refinance is actually feasible. If the refinance is denied or delayed, both spouses remain on the old mortgage, and the court may need to revisit the issue, often in a more stressful environment. At The Gasper Law Group, we regularly encourage clients to speak with a lender early and we coordinate the legal timeline with the financial reality, while structuring our low retainers and interest-free payment plans to leave you breathing room for these housing-related costs.
Selling The House During Divorce: What Really Happens
For some couples, especially when neither spouse can afford the home alone, selling is the most practical option. However, the process rarely feels simple when you are in the middle of a divorce. There are decisions about when to list, how to price, who will live in the home, and how you will handle showings and repairs while emotions are already running high.
If the court or the parties agree to sell, the first step is usually choosing a realtor. Sometimes the spouses agree on a Colorado Springs realtor they both trust. Other times, the court orders that a specific type of agent be chosen, or provides a method for breaking a tie if the spouses cannot agree. The listing agreement will spell out the realtor’s role, but your divorce orders should also address who has final say on pricing, price reductions, and accepting offers.
When the home sells, the sale proceeds are applied to pay off the existing mortgage and any liens or unpaid property taxes first. Closing costs and realtor commissions are paid next. The remaining funds, called net proceeds, are divided according to your settlement agreement or the court’s orders. In a straightforward case, the net proceeds might be split evenly. In others, one spouse may receive a larger share to offset another asset or to balance debts that they are taking on.
Timing is one of the biggest surprises. You might assume the home will sell quickly, but the Colorado Springs market can still present delays, especially if you need a specific price point to walk away with enough equity. During that time, you and your spouse need to know who is paying the mortgage, utilities, and maintenance. Temporary orders often address who stays in the house while it is listed and how carrying costs are divided, but if those details are not carefully spelled out, new conflicts can erupt over late payments or requested price drops.
We frequently work with local realtors and appraisers to help set realistic listing strategies and to draft orders that cover common sticking points, such as who will handle repairs requested by a buyer, whether large repairs will be paid from the sale proceeds, and what happens if the home does not sell within a certain window. That level of detail reduces the chances that you will end up back in court arguing over a leaking roof or a low offer when you are already exhausted by the divorce process.
Refinancing Or Buying Out Your Spouse’s Interest
When one spouse wants to stay in the home and has a realistic shot at qualifying with a lender, a refinance with a buyout of the other spouse’s equity can be a good solution. In basic terms, a buyout means that one spouse becomes the sole owner of the house and compensates the other spouse for their share of the equity, either in cash from a refinance or by giving them a larger share of other assets.
To understand how a buyout might work, start with a rough calculation. Assume your home appraises for 480,000 dollars and the mortgage payoff is 320,000 dollars. Equity is about 160,000 dollars. If you and your spouse agree on an even split, each share would be 80,000 dollars. If you will keep the house, you might refinance the mortgage into your name for 400,000 dollars. The new loan would pay off the old 320,000 dollar loan and provide 80,000 dollars to pay your spouse. Other cases may involve uneven splits or credits, but the basic structure is similar.
Divorce decrees that include a buyout almost always contain timing provisions. You might see language that gives the spouse keeping the home 90 days to apply for a refinance and 180 days to complete it, for example. The order should also explain what happens if the refinance is denied or not completed in time. Remedies can range from extending the deadline, to requiring the home to be listed for sale, to allowing the other spouse to ask the court to enforce a sale.
One risky structure we caution clients about is leaving both spouses’ names on the mortgage while taking one spouse off title. On paper, that arrangement can look like a quick fix if refinance is not immediately possible. In reality, the spouse who is no longer on title still has the mortgage debt on their credit report, and their credit is damaged if payments are late, even though they no longer own the property. That can make it difficult for them to qualify for their own loan later and can lead to disputes if payments fall behind.
At The Gasper Law Group, we draft detailed orders around refinance and buyouts. We help you set deadlines that align with what lenders in this area typically require, specify what proof of effort must be provided, and build in backup plans that address what will happen if a refinance is not approved. That way both spouses understand the path forward and the consequences if a key step, such as loan approval, does not occur.
What If Neither Of You Can Keep The House Right Now?
Sometimes the hard truth is that the house you bought together no longer fits either of you financially on your own. Incomes may have dropped, debt may have increased, or the mortgage terms might simply be too heavy for a single household after support payments are factored in. When no one can realistically refinance, you still have choices, but each choice comes with significant tradeoffs.
One option is to agree that the house will be sold, but on a longer timeline than a typical immediate listing. For example, spouses might agree that the home will be sold in two years, giving one spouse and the children time to adjust, or to reach a particular school milestone. During that time, the decree needs to spell out who lives there, who pays what, how repairs are handled, and exactly when the listing process will start. Courts balance the desire for stability with concern about keeping ex-spouses tied together in a long-term joint debt.
Another possibility is to rent the home out if it can carry itself as a rental. That can make sense if the Colorado Springs rental market supports the payment and both spouses are willing to act like business partners for a time. But co-owning a rental after divorce is not simple. You need clear written terms about collecting rent, paying the mortgage, handling vacancies and repairs, and how and when you will eventually sell or transfer the property. Without that level of detail, disputes over money or maintenance can quickly undo whatever financial benefit you hoped to gain.
Continued co-ownership, whether you rent the property or one of you stays living in it, raises the same basic problem. You are tied together through a major asset and a major debt. If one person misses a payment, the other person’s credit can be affected. If a large repair is needed and one person cannot or will not contribute, the relationship may end up back in court. Judges in Southern Colorado typically prefer clean financial splits when possible, but they will consider more creative structures if both spouses understand and accept the risks.
Our role in these more complicated scenarios is to walk you through the long-term implications, not just the next year. If your first instinct is to say, “We will just keep it together for now and figure it out later,” we help you slow down and build a written plan that addresses specific issues before they arise. Sometimes, that process confirms that a short-term rental or deferred sale is workable. Other times, it makes clear that a sale now, even if painful, is safer in the long run.
Special Housing Issues For Military Families In Southern Colorado
Military families in and around Colorado Springs often face housing decisions that are even more tangled than those of civilian families. PCS orders, deployments, and on-base versus off-base housing choices all collide with divorce timing. A plan that looks sensible for a civilian couple can fall apart quickly if one spouse is suddenly ordered to another state or overseas.
Consider a servicemember who files for divorce and then receives PCS orders before the case is finished. If the family owns a home off base in the Colorado Springs area, the non-military spouse may want to stay in the house so the children can remain in their current schools and near extended family. The servicemember may need to move and cannot comfortably afford both off-base housing in the new duty station and to stay on the Colorado Springs mortgage. Those competing needs affect whether a buyout, sale, or short-term transition plan makes sense.
Basic Allowance for Housing (BAH) and other military income can also complicate refinance and new purchase plans. On paper, BAH can help qualify for a mortgage, but lenders often want clear documentation and some assurance of continued service. At the same time, if a servicemember’s BAH will change after a divorce or PCS, a refinance that looks affordable today may become very tight later. We help clients factor in likely changes to BAH and duty station when deciding how much house they can realistically carry post-divorce.
Deployment and training schedules create practical challenges too. A deployed servicemember may need to review draft orders, sign documents, or appear for hearings from another time zone, and the spouse at home may shoulder most of the day-to-day decisions about showings, repairs, or moving. At The Gasper Law Group, our proximity to major military posts and our use of secure technology and flexible scheduling allow us to keep both spouses informed and involved, even when one of them is not physically in Colorado.
Because we regularly work with military families, the examples described here reflect patterns we have actually seen. We have watched housing plans fall apart because orders did not account for a likely PCS, and we have also seen thoughtful agreements hold up well through moves and reassignments. That experience informs how we draft timelines, build in contingencies, and help you prioritize both service obligations and your children’s need for stability.
Planning Your Next Home After Divorce
In the middle of a divorce, it is easy to focus only on the current home and lose sight of what comes next. Whether you keep the marital home, sell it, or walk away with limited equity, you still need a plan for where you and, if you have them, your children will live in the short and medium term. That plan often evolves, and for many people, renting for a period is a smart bridge rather than a step backward.
If you will be the one moving out, or if the house will be sold, think of the next one to two years in phases. You might need an immediate rental or temporary housing while the divorce is pending and the house is on the market. Later, once the decree is final and your finances settle, buying may become realistic. Lenders commonly want to see your final divorce decree, support orders, and a clear pattern of income before they will approve a mortgage. That means your property settlement today should be drafted with tomorrow’s loan application in mind.
Credit is a key part of this picture. Late mortgage payments, high credit card balances used to cover moving or legal costs, and unresolved joint debts can all drag your score down. Checking your credit report early, disputing any clear errors, and building a realistic post-divorce budget can make a big difference. The more you can show a lender stable income and controlled debt, the easier it will be to qualify for a mortgage when you are ready.
We also encourage clients to communicate with a lender or financial advisor before signing off on final property and support terms, especially if buying again within a few years is a priority. The way equity, support, and debts are structured can either support that goal or make it much harder. Our role at The Gasper Law Group is to factor those long-term housing goals into your legal strategy, not just to close out the case and leave you to sort out the next chapter on your own.
Talk With A Colorado Springs Divorce Team About Your Housing Options
There is rarely a one-size-fits-all answer to divorce housing issues. For some families, keeping the home through a refinance and buyout works well. For others, a sale and a fresh start in a more affordable place is the healthiest path. What matters is that your decision fits your income, your children’s needs, your credit, and, if you are military, your service obligations and likely moves.
Working through those choices on your own, while you are under stress and trying to guess what a Colorado court or a lender will do, can be overwhelming. At The Gasper Law Group, we help clients across Colorado Springs and Southern Colorado understand their legal options, talk through the real numbers, and build divorce agreements that support stable housing in the years ahead.
To discuss your specific situation and your home, reach out to schedule a consultation online or call (719) 212-2448.