Partition Actions For Unmarried Couples In Colorado

The landscape of modern relationships is diverse, and it’s increasingly common for unmarried couples to purchase property together. While the excitement of building a life together is wonderful, what happens when the relationship ends and you find yourselves as co-owners of real estate without a clear agreement on how to move forward? This is where the legal concept of partition can become a critical tool, and it’s a topic we can navigate for you here at Modern Family Law.

Unlike married couples who have the framework of divorce proceedings to divide marital assets, unmarried couples in Colorado often face a more complex situation when it comes to jointly owned property. Without the legal structure of marriage, there isn’t an automatic process for asset division. In these circumstances, partition is often necessary.

The Unique Challenges For Unmarried Couples

When an unmarried couple buys property together, they typically hold title as joint tenants or tenants in common. While both forms of ownership grant each person an undivided interest in the property, they lack specific legal protections and division mechanisms inherent in divorce.

This can lead to difficult situations when the relationship ends:

• Disagreement on Sale: One partner may want to sell the property and liquidate their investment, while the other wishes to stay.
• Financial Imbalances: Perhaps one partner contributed more to the down payment or ongoing expenses, and they seek a fairer return on their investment
• Lack of a Formal Agreement: Many unmarried couples don’t have a written agreement outlining how they will handle property division if they separate
• Emotional Complexity: The breakup itself can add layers of emotional difficulty to an already complex financial situation.

How Partition Works In This Context

In the absence of a marital dissolution process, a partition action under Colorado law provides a legal avenue to resolve disputes over jointly owned real estate for unmarried couples.

The process generally unfolds in the following stages:

1. Filing the Lawsuit: An owner files a complaint for partition in the district court where the property is located, naming all other co-owners

2. Valuation of the Property: The court will typically want to see an appraisal performed to determine the current fair market value of the property.

3. Division or Sale:

» Division “In Kind” (Rare): Ideally, the Court will physically divide the property into separate parcels based on the owners’ proportionate shares. This is more feasible with larger, undeveloped land. However, it’s often impractical for single-family homes or smaller properties

» Sale and Division of Proceeds (Most Common): When physical division isn’t feasible or equitable, the court will likely order the property to be sold. The proceeds from the sale, after covering costs and any liens, are then divided among the owners according to their ownership interests.

4. Accounting and Adjustments: The court can also consider any financial contributions or expenses made by individual owners during their period of co-ownership and make adjustments to the final distribution of proceeds to ensure fairness. For instance, if one owner paid for significant repairs, they might be credited for those expenses.

What Counts as a Contribution?

Contributions can include:

» Down payments on the property

» Payments for property improvements. However, the value credited for an improvement is the amount the enhancement increased the value of the property, NOT the amount of money (or time) spent.

» Mortgage payments. Mortgage payments may count as a contribution. However, courts disagree as to whether the portion of the mortgage payment attributable to interest is considered a contribution.

Why Seek Legal Counsel?

Navigating a partition action as an unmarried couple can be legally intricate and emotionally challenging. Here’s why seeking guidance from a family law firm like ours is crucial:

» Understanding your rights: We can help you understand your ownership rights and potential outcomes of a partition action based on your specific situation

» Negotiation and Mediation: While partition is a legal right, it’s often in the best interest of all parties to attempt to negotiate a settlement outside of court to save time, money, and stress. Mediation can be a valuable tool in reaching a voluntary agreement. We can act as your advocate in negotiations with your former partner, attempting to reach a fair settlement outside of court.

» Strategic Legal Representation: If a lawsuit is necessary, we will provide skilled legal representation to protect your interests throughout the partition process. This includes presenting evidence of your financial contributions and advocating for a fair division of the property

» Minimizing Stress and Conflict: We can help streamline the legal process, minimizing the stress and emotional burden on you during a difficult time

Modern Family Law

The end of a relationship is never easy, and dealing with shared property adds another layer of complexity. If you are an unmarried couple in Colorado facing disputes over jointly owned real estate, don’t navigate this challenging situation alone. Contact our family law team at Modern Family Law for a consultation. We can provide you with the guidance and representation you need to understand your options and work towards a fair resolution, allowing you to move forward with clarity and financial security.