The family home is often the most valuable asset in a marriage. This is because it carries an emotional, nostalgic value, as well as financial, which both parties may find hard to let go of. But, the Tennessee family law courts must find a way to distribute it equitably before the divorce finalizes.
Sell it and divide the proceeds
The law allows you to sell your marital home and divide the proceeds equitably upon divorce. This process starts with an accurate valuation of the property either by a real estate agent, a court-appointed appraiser or a professional valuation company. The couple would then need to agree on a sales price and marketing plan. After the sale, the net proceeds would be divided according to the terms of the divorce agreement or Tennessee family law.
One person buys out the other’s share
In some cases, one spouse may want to keep the family home while the other wants to cash out their equity. If you’re in this situation, you’ll need to come up with a buyout agreement that is acceptable to both parties and approved by the court.
The person wanting to keep the family home must have enough cash that won’t be subject to further asset division proceedings. If not, they may be able to refinance the mortgage or take out a home equity loan to come up with the necessary funds once the divorce is finalized.
Co-own the marital home and continue to live there
In some cases, divorcing couples may decide to keep the family home and continue living there together. However, this can only work if you have a good relationship and can communicate well with each other.
You’ll need to develop a co-ownership agreement outlining how you’ll split the mortgage payments, property taxes, insurance and repairs. You should also consider what will happen if one of you wants to sell the property or move out in the future.
Regardless of what you decide, it’s important to ensure that your rights are protected and that you are getting what is fair to you in the property division. In addition, the law allows you to make this decision out of court, that is, if you can agree with your partner on what’s best for you and your children (if you have any). This can help you have more control over the outcome of your divorce.