Barbie and Ken Break Up… Who Gets the Dreamhouse?

When Barbie and Ken were together, the Dreamhouse symbolized perfection. After the breakup? It’s just a very expensive asset with a mortgage. Everyone has opinions. Barbie picked the pink decor. Ken paid for the hot tub. Barbie needs stability. Ken moved out first. So, if the Dreamhouse were in Colorado, what would happen? 

When relationships end, houses stop being emotional symbols and becomes a (oftentimes the largest) financial asset. In Colorado family law, the Dreamhouse is divided based on statutes, equity, and practicality.

When a marriage or relationship ends, a shared home ceases to be a sentimental symbol and becomes purely a financial asset. In Colorado family law, the division of the marital residence (often a "Dreamhouse") is determined by equity and statute.

Under C.R.S. § 14-10-113, A home is typically classified as marital property if it meets one of two conditions:

• It was acquired at any point during the marriage.

• It was acquired before the marriage, but during the marriage, marital funds or effort were used for mortgage payments, improvements, or to contribute to the property's appreciation.

Courts look at each spouse’s contribution to the home including financial (down payment and mortgage) and non-financial (homemaking and maintenance). Even if the home started out as separate property, any appreciation during the marriage is typically marital. 

Simply put, if Barbie purchased the Dreamhouse prior to the marriage, it is generally considered her separate property at the outset. However, any appreciation in the home's value that occurs during the marriage (Ken buys a hot tub, builds a roller rink, etc.) will typically be classified as marital property and subject to division.

In Colorado, marital property is subject to equitable distribution upon divorce. This principle mandates that assets be divided in a way that is deemed "fair" or "equitable," which does not automatically mean an equal, 50/50 split. 

Also, Colorado courts do not consider "marital fault" when determining the division of property. "Marital fault" refers to misconduct that may have contributed to the divorce, such as infidelity, deceit, or abuse. While these issues may be relevant in other ways, they are excluded from the court's considerations in dividing the marital estate. Likewise, Colorado is not a desertion state, this means that if a spouse leaves the marital home they do not give up rights to marital property.

There are typically two outcomes regarding the marital home:

1. One party keeps the house

2. They refinance (or assume the loan) into their own name

3. They buy out the other party’s equity

4. The house is sold

5. Often the cleanest option

6. Especially common when neither party can refinance

7. Proceeds of sale can be divided equitably between spouses

The Dreamhouse is not about who won the breakup. In Colorado, it’s about what is reasonable and equitable… even if that means saying goodbye to the pink pool or walk-in closets.