What Happens to the Family Home in a Divorce?
Introduction
Divorce is an emotionally trying time for couples, and the division of assets, including the family home, can be a complicated and contentious issue. In this article, we will take a closer look at what happens to the family home in a divorce.
Understanding the Legal System
The legal system can be complex, especially when it comes to divorce. Typically, the family home is considered to be a marital asset, and as such, it is subject to division during divorce proceedings. Depending on the state or province you live in, the laws surrounding the division of assets may be different.
Equitable Distribution vs. Community Property
There are two types of property distribution laws in the United States – equitable distribution and community property. Equitable distribution means that the assets acquired during the marriage will be divided fairly, but not necessarily equally. Community property laws, on the other hand, mandate that assets are split 50/50 between the partners.
The Role of a Lawyer
It's important to have a lawyer on your side during divorce proceedings to ensure that your interests are protected. A divorce lawyer can guide you through the legal system and help you understand your rights and obligations regarding the division of assets, including the family home.
Determining the Value of the Family Home
The value of the family home is an important consideration in the division of assets during a divorce. Typically, a professional appraiser will be hired to determine the value of the home. The appraiser will evaluate the condition of the home, its location, and the current market conditions, among other factors.
Considering the Mortgage
When determining the value of the family home, it's important to take the outstanding mortgage into account. If there is still money owing on the mortgage, this debt will need to be considered when dividing the assets.
Splitting the Equity
Once the value of the home has been determined, the equity in the property will need to be divided. Equity is the value of the home minus any outstanding debts, such as the mortgage. Typically, the equity is divided equally between the partners. However, if one partner contributed more money towards the home, they may be entitled to a larger portion of the equity.
What if One Partner Wants to Keep the Family Home?
In some cases, one partner may want to keep the family home, even after the divorce. The partner who wants to keep the home will need to buy out the other partner's share of the equity. This means that they will need to pay the other partner an amount equal to their share of the equity.
Refinancing the Mortgage
If one partner wants to keep the family home, they will need to take over the mortgage payments. This may require the partner to refinance the mortgage in their name only. It's important to note that this can be a complicated process, and the partner who wants to keep the home will need to have a good credit score and a steady income to qualify for a mortgage.
Conclusion
In conclusion, the division of assets, including the family home, can be a complicated issue during divorce proceedings. It's important to work with a lawyer and a professional appraiser to determine the value of the home and the equity that needs to be divided. If one partner wants to keep the home, they will need to buy out the other partner's share of the equity and refinance the mortgage in their name only. With the right guidance and support, couples can navigate this process and move forward with their lives after a divorce.