Divorce comes with a variety of issues and decisions to be made. One important thing you may be thinking about is what will happen to the family home during your divorce. A home is a large investment and it is generally one of the main assets considered during a divorce. There are a few factors that play into what happens to the family home in this process.
Who Gets The House?
One of the main terms you will need to learn during your divorce is “marital property.” This is the most important factor when dividing assets.
Marital property refers to any property or assets acquired during your marriage. So, if you bought your house during your marriage, it is marital property. In these cases, all your marital property will be equitably distributed between you and your spouse during your divorce.
That’s to say, if you cannot come to an agreement with your spouse, a judge can make decisions about your assets based on income, financial contributions and earning potential.
How Can We Divide it?
That leaves the question about how to divide the family home. You can’t split it down the middle, so what are your options? There are a few including:
- Divide larger assets – You can choose to divvy up more valuable assets to even things out. For example, you take the house while your spouse takes the boat and the car. This method can be more efficient but it requires valuing and negotiating.
- Buy out the other spouse – One party may decide to pay the other spouse their half of the market value of the house in order to keep it. This helps with maintaining consistency if one party is particularly attached to the home but it can be complicated financially.
- Sell and divide the profits – This is a common option. If neither spouse wants to continue owning the home or cannot afford to do so, you may sell it and then equitably divide the profits from the sale.
- Continue co-owning the house – This is a less common option but it can work in certain situations. However, it is probably the most complicated, as you and your spouse will have to work out an arrangement for how it should operate.
There are various ways you can divide your home during divorce and every person’s situation is unique. These are a few options you may want to consider.