Dear Reader, Often a key issue in a divorce is what should happen with the marital home. Until the parties know where they and the children will be living post-divorce, it is hard to move on mentally and prepare for the next step. Having to relinquish the feeling of security that a home represents to both parents and their children is a loss that deserves to be mourned like any other. There are also many interrelated issues in a divorce which stem from the marital home such as: where will the children go to school after the move; how far apart will the parties be living from each other later and how does that distance impact parenting time; what will the new monthly budget be for one or both parties after the move; is there enough money to buy the other party out of their interest in the marital home, etc. Therefore, while the issue of the marital home is pending, these other considerations hang in abeyance often preventing the case from moving forward or settling sooner.
Here are a few tips about the marital home in a divorce:
- If the parties cannot agree on how to dispose of the marital home in the divorce, the court will likely order it sold. Sometimes parties agree to hold off in selling the home until a milestone event like a child’s high school graduation.
- The court has the authority to order the sale of a marital home pendente lite (during the pendency of the divorce) in order to generate support or litigation funds. In my opinion, this authority is rarely exercised.
- A realtor’s commission usually does not get factored into the amount of a buyout by one spouse of the other spouse’s equity.
- A marital home is valued at the time the house is disposed of rather than the date of a divorce complaint.
- Transferring the deed to the marital home to one party does not relieve the other party of mortgage debt in their name. I have never seen one spouse able to assume the mortgage and remove the other spouse’s name without refinancing. Remember that continuing a joint loan post-divorce carries risk for the person remaining on the debt but who no longer owns the home.
Negotiating the disposition of the marital home in a divorce is no easy task. Remember, it is basic human nature to try and hold onto something that once made us feel safe, happy and secure even if you are getting divorced. However, this difficult change can be made easier by good planning at the outset. Call me today to schedule a consultation so that we can discuss your options. Strategizing now can result in less stress and havoc in your life when it is time to make a decision concerning the marital home. Until next month…SSC
