When judges decide who gets the marital home in a divorce, the home must be classified as community property before it is given to either spouse. This is accomplished through the use of one of the following techniques.
Selling the Home
When a spouse can afford the house on their own or neither person wants to remain there, selling the home is a viable option. First:
- The mortgage must be paid in full
- Lines of credit should be paid off
- Capital gains taxes will be paid
The biggest drawback of this method is the costs incurred in the maintenance and sale of the home. It’s a complicated process, and it becomes even harder during a messy divorce. A Divorce Attorney in Green Bay WI will provide case-specific advice.
Arranging a Buyout
Another way to handle the marital home during divorce proceedings is to set up a trade or a buyout. Here, the home’s equity goes to the departing spouse. This is a good option when there are substantial assets to be divided, but there are pitfalls to consider. The buyer may end up overpaying if the home depreciates, and the seller may lose out if the home increases in value.
Relinquishing Other Assets
In most cases, buyouts are executed when a spouse gives up other assets such as investments and retirement accounts. To execute a fair trade, an appraiser will assess the home’s value. Once that’s done, the spouse staying in the home will relinquish assets equal to half the home’s value.
The Marital Home in Lieu of Alimony
Another common scenario occurs when alimony or spousal support is included in the agreement. Here, the spouse who is more likely to pay support will reduce the price or give up the home to the other person instead of making support payments.
Hire an Attorney Today
These are the most common ways to handle the marital home in a divorce, and each strategy has its own benefits and risks. With help from a Divorce Attorney in Green Bay WI, clients can make informed decisions in consideration of these factors. Call the Brabazon Law Office LLC to request a consultation.
