Most states use a rule known as equitable division when judges divide marital property in divorce. Basically, this means that a couple's marital assets and debts will be distributed among them in a way that the judge deems equitable (fair) in the circumstances of the case. It doesn't necessarily mean that the property will be divided equally. The most common way capital is divided is by selling the house and dividing the profits.
When you sell your home, you keep the equity, minus the costs of selling. It is common for a couple to divide capital, based on their separation agreement, or use it to pay other debts they have accumulated together. In case you don't want to sell the house and divide the proceeds from this sale, one party can keep the house in exchange for another asset. When considering how to divide your home's net worth in a divorce, it's important to understand your options.
In addition, if you have children, the custodial parent may want to keep the house so that they can continue to raise the children in their childhood home. If the house was purchased during the marriage as a couple, it will be considered marital property and will therefore be subject to division during the divorce. If you took on joint debt during your marriage, such as a mortgage, a car payment, or a tax debt, you will probably have to divide the responsibility of repaying that debt when you divorce. If you want to keep the house and don't have the capital to do a cash refinance or the money to pay your ex his share, a HELOC or home equity loan might help.
But what if a couple owns a property, such as a house, that is worth paying more than all of their other assets combined? Next, we'll talk about the different ways to deal with a house going through divorce.
divorce is
often a difficult and stressful process, especially when there are assets to divide, including a house. You should also make sure that the home's earnings are part of the property settlement and are not considered alimony. There are several ways to determine the value of a home, which is the first step in determining how much capital you will be working with in a division.How the court decides on the house will depend on what else you have to divide, what income you entered into the marriage, and what funds your husband used for the down payment of the house. I am preparing to refinance and my ex requires me to ask for an appraisal, provide him with the documents and pay him any net worth of the house as of the current date.
