If you are getting a divorce, it can be emotionally difficult to talk about what happens to the marital house. This is especially true if you and your spouse have been living and raising your children in this house. Also, the marital home is a valuable asset you must deal with during your divorce settlement. To ensure your interest is protected, let a Lehi divorce lawyer work with you on this matter.
Who Keeps the House?
Determining how to divide a marital house during a divorce can be emotionally and financially hard. In the state of Utah, all marital assets, including the marital house, should be divided equitably between spouses. The marital house is not just a valuable asset but one that holds sentimental value. Negotiations when it comes to the marital house can be done by having one spouse keeping the house, buying out the interest of the other spouse, selling the house and dividing the proceeds equitably, or letting one spouse live in the house for a certain period and selling the house once the kids have turned 18 or graduated from high school.
The right option depends on your specific circumstances such as your financial health and how many marital assets you have. Sometimes, your assets and the home’s sentimental value may be enough to let you decide to keep the house. In other cases, selling the house may be the best decision.
Home Co-Ownership Following Divorce
If you have children, you and your spouse may want to co-own the marital home even for a limited period. Often, this can work if you have an amicable divorce and do not find it hard to reach a settlement through your lawyers. In general, this option provides your children with greater stability. You and your spouse will agree on how you pay the mortgage.
Selling the Marital House
You and your spouse may decide to sell the marital house after your divorce, especially if it is still highly mortgaged. This can protect both of your financial futures. By selling the house during your divorce, you make sure each party benefits from the related tax exemptions that apply to capital gain taxes.
The sale process should be part of the settlement negotiations and your respective attorney must be involved in this process. You and your spouse may have to make agreements on the level of offer you will accept, any repairs or renovations that must be done before you sell the house, and you split the cost related to the home’s sale.
