How Should Ownership of the Family Home Be Handled During Divorce?
During the divorce process, spouses will need to make many different decisions about how to handle financial issues. Many of these issues will involve the division of marital property, and spouses may be required to make sacrifices or adjustments as they determine how to ensure that they will have the financial resources needed to support themselves after their divorce is complete. Ownership of a couple’s marital home is one issue that can sometimes be difficult to resolve, especially when both spouses have an emotional connection to the home or when parents want their children to continue living in the same community. By understanding their options, spouses can make decisions that will benefit them moving forward and ensure that they will be able to maintain financial success.
Options When Addressing Real Estate Ownership
In many cases, selling the marital home during the divorce process is the best option for a couple. This will avoid any disputes about who will get to live in the home that a couple once shared, and the profits earned from the sale of the home can be divided between the spouses, providing them with financial resources that will help them establish their own individual living arrangements. However, when selling a home, spouses will want to be aware of any capital gains taxes that may apply, as well as any other issues that may result in financial losses.
If one spouse wishes to continue living in the home, they will usually need to determine how they will be able to “buy out” the other spouse’s share of the home’s equity. The other spouse may receive a larger share of other marital assets, or a monetary payment may be arranged, either as a lump sum or an ongoing payment plan. The home will need to be refinanced with one spouse as the sole borrower, and the other spouse will need to be removed from the home’s title and deed. While owning the home may be preferable for one spouse, they will need to be sure they will be able to afford ongoing mortgage payments, as well as other expenses, including utilities, maintenance, insurance, and property taxes.
In some cases, spouses may agree to co-own a home for a certain period of time after getting divorced. This option may be preferred if a couple wishes to ensure that their children can continue living in the home until they graduate from high school. Parents may also use a “birdnesting” arrangement in which each parent will stay in the home with their children during their parenting time. When co-owning a home, spouses should be sure to understand who is responsible for paying certain expenses, who will be able to claim mortgage interest tax deductions, and when the home will eventually be sold.
Contact Our Joliet Marital Property Division Lawyers
At the Law Offices of Tedone & Morton, P.C., we can advise you of your rights and options regarding your marital home during your divorce. We will provide you with representation during the divorce process, working with you to negotiate a settlement that will provide you with financial security as you move forward with your life. Contact our Will County divorce attorneys by calling 815-666-1285 to schedule a free consultation.
Sources:
https://www.zillow.com/sellers-guide/divorce-selling-house/
https://money.usnews.com/money/personal-finance/family-finance/articles/2017-10-11/divorcing-should-you-divorce-your-home-too
https://www.kiplinger.com/article/retirement/t065-c032-s014-keeping-the-house-post-divorce-now-more-affordable.html
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