It is rare that during a divorce there are no disputes about major assets. In most situations the biggest of the shared assets is the home. Those that go through divorces do not usually know what will happen with investment properties or marital homes. Dividing homes becomes necessary so divorce attorney Joshua Harshberger tells us what is analyzed when this is done by courts.
Use During Marriage And Real Estate Property Purchase Date
The most important thing that is taken into account is purchase date. When one party bought the real estate property before marriage, it can be considered as being a pre-marital asset. However, when the property did serve as a marital home or if it is a source for marital income, it becomes a marital asset and equitable distribution between spouses is necessary.
In order for a pre-owned purchase to retain ownership for just one spouse, it needs to have remained owner spouse exclusive benefit. Solitary ownership interest dissolves when the owner spouse starts sharing use.
Real estate property that was bought after marriage data or that was used for official marital purposes (like living in the house) is normally regarded to as being an asset for both spouses.
Dividing Real Estate Without Fights
When the spouses are civil and want to go through a fast, clean break, property selling is the best solution. The issue in this case is how proceeds will be divided. Unfortunately, this is an issue that can easily become contentious. When agreeing beforehand, the entire process is simple. However, this rarely happens. Usually, the first thing is having attorneys negotiate. Mediators can also be hired to determine cash distribution after the sale.
When negotiations fail, it is the judge that determines how much each spouse gets, based on law and fact. In many cases this does leave both spouses unhappy but the argument is removed as someone else handles asset separation.
When Both Parties Want The House
If a former spouse wants the property out of spite or financial need, everything is more complex. The spouse that stays in the home can buy out the interest of the other spouse. Departing spouse has to be removed from official deeds, obligations, rights and mortgages.
If both spouses want to remain in possession of the home, only the judge can make a decision. Ownership, in this case, is usually granted while other party assets are removed. The idea is to have the division be a fair one. The judge is going to analyze the financial situation of both spouses, will determine ownership percentage and will then decide who gets to own the house. The value difference is covered by moving ownership around until everything is equal.
Dividing a home during divorce is definitely something that is difficult to do and the process can take a long time. The most important part of the process is getting legal help from an attorney that is experienced in handling real estate disputes during divorces. Patience is necessary but when parties do not agree, judges can handle everything.
