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HelloThis is Samuel.The court will need to follow Colorado laws since that is where she filed the divorce. Under CO marital property laws, there would be an "equitable" distribution of all marital property. That is whatever was acquired during the marriage.The fact you have maintained the home for 12 years solely without help from your spouse will be considered. So I suggsest you will want to look at the amount of equity in the home now, and also up and until the time of the separation. You will want to consider a percentage of what she contributed up and until the time of the separation. If that is at least 30 percent, then you might consider her offer. If it is not, then you should try to negotiate with her a lesser percentage.
As is stands, a court can order you to buy her percentage out or they can force you into a sale wherein any profit would be split equitably based on her contributions up and until the separation.