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Agreement or order to sell
Both spouses consent in writing, or the court orders the sale.
By Brian Lee Burke, the hardest working man in real estate. Licensed since 2003. The Kenna Group at Keller Williams DTC.
How to sell a house during a divorce comes down to one thing: two people who may not agree on much have to agree on the same listing, the same price and the same offer. This guide walks Colorado sellers in Denver, Aurora, Lakewood, Centennial, Parker and across the Front Range through the ten steps of selling the marital home in today's market. That market gives buyers more choice and time than they had a few years ago, so price, condition and timing matter more. If you want a starting number, call or text 303-955-4220 (a live person answers) and ask for a free Smart Pricing Report. We send the same report to both spouses at the same time.
We are real estate brokers, not attorneys or tax advisors. Your Colorado divorce attorney or mediator, and your CPA, should confirm how anything here applies to your case.
Step 1: Get the agreement (or the order) to sell
Once a divorce case is filed and served in Colorado, an automatic temporary injunction (C.R.S. 14-10-107) keeps either spouse from selling marital property alone. To sell during the case you need both spouses' written consent or a court order. If one spouse refuses, the court can order a sale. Our divorce site explains what happens when one spouse refuses to sell.
Step 2: Choose one agent who works for both of you
Both owners sign the listing agreement, so both should be comfortable with the agent. Look for someone who sends every update to both spouses at once, works with both attorneys and doesn't take sides. Ask how many divorce sales they've handled and how they handle disagreements. Find a local specialist on our Denver divorce realtors, Centennial divorce realtors or Arapahoe County divorce realtors pages.
Step 3: Agree on the decision rules up front
Write down, before you list:
- The list price and the lowest price you'll both accept.
- Who approves price changes, and how fast you'll answer an offer (for example, within 24 hours).
- Who pays for repairs, cleaning and staging, and whether that comes back out of the proceeds.
- What happens if you can't agree (for example, the mediator decides or your attorneys meet).
This one page prevents most of the fights we see.
Step 4: Price it from sold homes, not from hope
In a slower market, overpricing costs more than ever. Homes that sit collect price cuts, and buyers notice. Price from homes that sold and went under contract nearby, not from list prices or online estimates. Watch the live numbers on our Denver real estate statistics page and read our guide to pricing your home. If the attorneys need a defensible number, a licensed appraisal is the usual tool.
Step 5: Know your net before you list
Both spouses want to know what they'll actually get. Net proceeds = sale price, minus the loan payoff, minus closing costs (commission, title, prorated taxes, HOA fees and any concessions). Estimate yours with our Colorado closing costs calculator. If the net is close to zero or negative, read our short sale options before you list.
Step 6: Prep the house without a fight
Fix what buyers will notice and what an inspector will flag. Skip the remodel. If one spouse still lives there, agree on a cleaning and showing routine in writing. The person living in the house is the one who has to keep it show-ready, which isn't easy during a divorce. Our divorce site has a guide to staging when one spouse still lives in the house.
Step 7: Keep the story private
Buyers don't need to know why you're selling. Leave "divorce" and "motivated seller" out of the listing, the signs and the open house small talk. It invites low offers. Your agent should keep the reason confidential.
Step 8: Handle offers the same way every time
Every offer goes to both spouses (and, if you've agreed, both attorneys) at the same time, with a written summary: price, financing, concessions, inspection terms and closing date. Respond within the time you agreed in Step 3. If you can't agree on a counteroffer, use the tie-breaker you agreed on.
Step 9: Get through inspection and appraisal
Expect a repair request. Decide in advance how much you'll spend on repairs or credits without a new discussion. If the buyer's appraisal comes in low, look at the comps together before you answer.
Step 10: Close and split the proceeds the right way
In Colorado, the title company runs the closing. It pays off the loan and disburses the rest as your written agreement or court order directs. If the split isn't settled yet, the proceeds can be held in escrow until it is. Give the title company the signed agreement early. Both spouses sign the closing documents (in person, by mail-away or through a power of attorney if allowed).
Taxes: the federal home-sale exclusion is up to $250,000 of gain per person, or $500,000 for a married couple filing jointly, if the ownership-and-use tests (2 of the last 5 years) are met. Divorce changes how those tests apply, so ask your CPA before you choose the closing date.
What to watch out for
- Listing without both signatures. It stalls the sale and invites a fight.
- Overpricing to "win." The house sits, and both spouses lose equity to price cuts and carrying costs.
- Letting the mortgage slide while you're listed. Late payments hurt both credit reports.
- Telling buyers it's a divorce. It invites lowball offers.
- Slow answers to offers. Buyers walk when sellers take days to respond.
- Moving the proceeds before the split is settled. Leave the money with the title company until the agreement or order says where it goes.