Owning a home can be a source of pride for individuals. Frequently, owning instead of renting allows people to accrue wealth in the form of equity. Some homeowners even intentionally purchase properties in mediocre condition with the intent of fixing them up to make them more attractive and valuable. Whether spouses purchase turnkey homes that are move-in ready or rehab homes that are in poor condition, their real estate can become a top complicating element if they decide to divorce.
How can real property influence a divorce process?
The challenges of divorcing as a homeowner
There are many different issues that divorcing homeowners have to address with one another. For example, they have to decide who stays in the home and who leaves during the divorce. In many cases, the person who stays in the home during the divorce proceedings may seek possession of the home in the property division settlement, although the other spouse could also seek possession of the property.
The person who leaves the home may then have to choose between renting an apartment or a standalone home. That decision can potentially have implications for child custody determinations and even the final allocation of the marital estate.
When judges settle property division disputes, they look at the obligations of each spouse, including their leases and child custody arrangements. The parent with primary custody may have a stronger claim to staying in the home, as such arrangements keep life as stable as possible for the children.
Occasionally, both spouses are able to remain in the marital home throughout the divorce to keep their costs low. In such scenarios, thorough agreements regarding physical maintenance and financial responsibilities are typically necessary to prevent conflict.
At the end of the divorce process, one spouse can leave, or the spouses can agree to sell the home and split the proceeds from the sale in a specific manner. If spouses can’t agree about what should happen with the home, then a judge can settle their dispute.
What if spouses own other real property?
Some married couples accumulate portfolios that contain a variety of real estate investments. They might just own a vacation home where they spend summers with their children, or they might own multiple rental properties or parcels of vacant land.
Spouses who have shared ownership of multiple properties may have to determine what each property is worth and then come up with a long-term solution for those properties. Spouses can divide the properties so that each owns a few of them. They could agree to sell most of their holdings and share the proceeds.
A thorough review of a marital estate overall and details related to real property holdings with a skilled legal team can help people as they begin preparing for divorce. Details ranging from the amount of equity the spouses have to their custody arrangements can influence what happens with their homes and other real estate holdings. Learning more about property division statutes can make it easier for spouses to set appropriate property division priorities during divorce.