No one goes into a marriage expecting it to end in divorce. But, unfortunately, things don’t always work out the way we plan. If you find yourself facing the end of your marriage, you’re probably wondering what will happen to all your hard-earned assets and property. After all, real estate and divorce can get really complicated, your real estate can’t just be split down the middle.
Whether you like it or not, real estate is often one of the biggest sticking points in any divorce. So let’s take a look at some of the most common issues that come up when real estate is involved in a divorce, and how to handle them.
Selling the Family Home
The house is often one of the most valuable—and contentious—assets in a divorce. One of the most common questions we get from clients going through a divorce is “should we sell the house?” There’s no easy answer to that question, as it depends on a variety of factors. If you have young children, for instance, one of you may want to keep the house so they can have stability during this difficult time.
If you own your home outright or have little debt remaining on your mortgage, you may be able to buy out your ex’s share of the equity and keep the house. On the other hand, if you want a fresh start and your ex is insisting on staying in the home, they can also buy you out. Whichever way it happens, for one of you to buy the other out, the sale should close at a fair value that makes sense in your market and in your asset split. If neither of you can afford to stay in the home or neither of you wants it, you’ll likely have to sell it and split the proceeds.
So if you do decide to sell the house, there are a few things you need to keep in mind. First of all, it’s important to understand that you will probably have to sell the house at below market value. This is because buyers will be aware that the property is part of a divorce, and they will be looking for a bargain. Secondly, you will need to agree on a method for splitting the proceeds from the sale. Once again, this will likely come down to negotiation between you and your ex-spouse.
Dividing Other Assets
In addition to dividing up the proceeds from any sale of property, you will also need to divide other assets such as savings accounts, stocks, and bonds. Who gets what is up to the divorcing couple; if they can’t come to an agreement, a judge will decide for them so it’s best to try to figure out what you each want in advance. This can be a complicated process, so we recommend working with a financial advisor who can help make sure that everything is divided fairly.
Once again, it’s important to keep in mind that these assets will probably have to be sold at below market value. This is because they are considered “marital assets” and are subject to division in a divorce. Once again, you will need to agree on a method for splitting these assets between you and your ex-spouse.
Going through a divorce is never easy—especially when it comes to dividing up your assets and property. You’ll need to decide who gets what, which can be difficult if you and your spouse can’t agree on who should get what. And even if you do reach an agreement, there’s always a chance that disputes could arise later on down the road. That’s why it’s important to consult with an experienced divorce attorney who can help protect your rights throughout the process. With their help, you can ensure that you get what you’re entitled to under state law so that you can move on with your life post-divorce without any financial complications holding you back.