Who Gets The House In A Divorce?
A married couple’s house is often one of their biggest assets. If the home was purchased during the marriage, it will be considered a marital asset that must be divided in the event of a divorce. This will be the case regardless if one or both spouse’s names are featured on the deed. Let’s take a look at the options couples have when it comes to their house and the divorce process.
In A Divorce Who Gets The House?
There are two typical ways for spouses to divide the equity in a house during a divorce process, including the following:
- The couple can sell the house and evenly divide the net proceeds.
- Another option is for one spouse to refinance the debt secured by the house to remove the other spouse from the obligation while buying out the other spouse’s interest in the equity, at the same time.
The two options listed above will depend on whether either spouse wants to keep the house and can afford the house. In the event that neither wishes to keep the house, it will typically then go on the market. If one spouse does wish to keep the house, he or she will need to obtain a new mortgage in a large enough amount that’s either equal to his or her equitable share of the equity.
Of course, it is possible for one spouse to refinance the mortgage in an amount deemed sufficient enough to pay off the existing mortgage and give other assets to their spouse that ultimately offsets their equitable share of the equity. One spouse must now execute a new deed reflecting the ownership changes as soon as possible.
Both spouses can remain co-owners of the house following a divorce, but this situation is not generally suggested. In addition, the way one holds interest in the home will undoubtedly change upon a divorce.
How To Keep Your House
There are a few tips outlined below to help hold onto one’s house when going through a divorce.
Budget Well
It’s a good start to create a tight budget to prepare for monthly costs associated with homeownership. One must determine if their income and savings are enough to afford the home moving forward.
Sufficient Income And Savings
Sufficient income and savings are crucial toward qualifying for a mortgage. You will need to pay off any existing debt while also buying out your ex-spouse’s share of the equity. Instead of this, you could find enough assets to give to your ex-spouse in order to offset their share of the equity.
You will need to be able to pay all expenses, including the mortgage, taxes, insurance, and maintenance needs, by yourself.
Hire An Experienced Divorce Attorney
If you want to keep your home, then contact the experienced team at Ogborne Law today!
Source:
- Who Gets The House In A Divorce? Retrieved September 11, 2024. from https://www.johnsonduffie.com/articles/who-gets-the-house-in-a-divorce/
Collaborative Divorce And Child Custody
Discussions about child custody issues are always difficult during a divorce. While there is no way to make them easy or comfortable, you can find ways to work together. The collaborative divorce process helps with tools and professionals to make child custody and other decisions a little more manageable. By working together as a team, you’re able to make the decisions that are best for the kids.
Collaborative divorce can make these challenging times more manageable. It requires you to work with your spouse at a time when you have decided you need to go your separate ways. When it comes to child custody, though, you want to do all you can to make the right parenting decisions. Collaborative divorce can help create pathways for you to cooperate. If you live in the Phoenix/Scottsdale area and want to learn more about collaborative divorce, contact Ogborne Law today.
