During divorce proceedings, the end goal is to divide your assets equitably. That usually means in half, or close to it. But what happens when your house is most of your net worth and there isn't enough left over for the other person to receive even close to a fair share by taking everything else? Here are your options.
Sell the House
If neither of you really wants to keep the house, the easiest thing to do may be to sell the house. That turns your house into cash, and you can just split the money. If you sell it while you're still married, you may also be able to take advantage of the larger tax breaks for married couples.
Rent the House Out
Perhaps neither spouse is very interested in the house but it's not a good time to sell it because the market is down or for other reasons. You could create a company in the form of a partnership or LLC that will own the house and pay you each half of the profits. You can also include an option for one person to buy out the other later on. Of course, you only want to do this if the divorce is amicable and you'll be able to get along for business purposes.
One Person Takes Over the Mortgage
Mortgages are marital debts, and each spouse is responsible for the mortgage until the divorce judge approves a settlement that says otherwise. If you have an outstanding mortgage, the person taking the house could also take over the mortgage. That higher share of the debts will offset them getting a higher share of the assets in the form of the house.
Paying Rent to Each Other
Another option is that both spouses keep an ownership interest but only one keeps the right to live in the house, and the other receives rent or some other payments. This helps you avoid selling the house when you don't want to but also keeps it fair to the other spouse who doesn't get to live in the house.
Usually, the spouse living in the house would have some sort of option to buy out the other spouse, or the payments would only last for a certain amount of time. Until that happens, the spouse living in the house can't sell it to someone else without the other spouse being paid in full.
To learn more about family law issues, go to sites like http://www.tml-law.com.
Share16 January 2020
The laws governing child custody and guardianship can be confusing. As a family attorney, I have helped many clients gain legal guardianship over a foster child or a relative's child. Getting legal guardianship of a child you are caring for is important because you need to be able to make decisions about that child's education, health care and other matters. This blog will help you navigate the world of legal guardianship and show you how to take steps to get guardianship over a child whether the child's parents are cooperative or not. Legal guardianship does matter even if a child is not going to be adopted. I hope to help people find the way to get this done.
