Divorce
Divorce
Divorce real estate refers to the unique set of circumstances involving the sale, division, or management of real property (homes, land, etc.) during a divorce. Because real estate is often one of the most valuable assets a couple owns, its handling during divorce requires careful consideration. Divorce real estate involves legal, financial, and emotional aspects, with the main goal of equitably dividing the property.
Property Valuation
The home or property must be appraised to determine its fair market value.
Equity Division
The equity in the property, or the value after subtracting any mortgage, is divided according to the terms of the divorce settlement.
Divorce
Ownership and Equity
One of the biggest issues is deciding who gets the house or how to divide the proceeds if it’s sold. Equity is the difference between the home’s market value and what is owed on the mortgage.
Mortgage and Liability
If one spouse decides to stay in the home, they may need to refinance the mortgage to remove the other spouse's name from it. This is important because both spouses remain financially liable for the mortgage unless it's refinanced.
Alternative Arrangements
In some cases, couples may choose to retain joint ownership of the home even after the divorce is finalized. This arrangement is often temporary, used for specific reasons like waiting for the market to improve or allowing children to finish school.
