Who Gets The House In A Divorce?

Oftentimes, the biggest asset a couple owns is the house they live in. If the home was purchased during the marriage, it will be considered a marital asset that needs to be divided during a divorce. This is the case whether one or both spouse’s names are on the deed. Let’s take a look at your options when it comes to determining homeownership in a divorce.

How Does A House Get Divided In A Divorce?

Typically, there are two ways for you and your spouse to divide the equity in a house during a divorce process, including:

• Selling the house and dividing the net proceeds.
• One spouse refinances the debt secured by the house in order to remove the other spouse from the obligation while also buying out the other spouse’s interest in the equity.

These options depend on whether either spouse wants the house and whether either can actually afford to keep the house. If neither spouse wants the house, then the house will typically be put on the market. If one spouse does wish to keep the house, however, then that spouse needs to obtain a new mortgage in a large enough amount to satisfy any existing debt. The spouse must pay the other spouse an amount equal to his or her equitable share of the equity.

Alternatively, one spouse can refinance the mortgage in an amount sufficient to pay off the existing mortgage and give the other spouse different assets that can offset their equitable share of the equity. You would need to execute a new deed reflecting new ownership, at this time.

It is possible for you and your spouse to remain co-owners of the house following a divorce, but this scenario is not recommended. Additionally, the way you hold interest in the house will change upon a divorce.

What To Do If You Want To Keep The House

Use these five tips below if you wish to keep the house following a divorce.

1. Sufficient Income And Savings

If you wish to keep the home, it is crucial that you have sufficient income and savings to qualify for a mortgage on your own. You will need to not only pay off the existing debt, but also buy out the other spouse’s share of the equity, or there are enough other assets that you can give to the spouse to offset their share of the equity. You must be able to pay the mortgage, taxes, insurance, and all home maintenance needs on your own.

2. Budget Well

Making a tight budget can assist you when determining what monthly costs are associated with homeownership. You will need to figure out if your income and savings are sufficient to meet these expenses.

3. Hire An Experienced Divorce Attorney

If you are contemplating a divorce while owning a home, you need to seek the advice of an experienced divorce attorney. Contact the team at High Desert Family Law Group today!

Source:

1. Who Gets The House In A Divorce? Retrieved September 11, 2024. from https://www.johnsonduffie.com/articles/who-gets-the-house-in-a-divorce/