How should a divorcing Louisville couple divide their home? What is the best solution for the family residence in a divorce? When Kentucky couples divorce, property division issues such as the family home can be challenging and drawn out. Often, each spouse has something that he or she wants and is willing to make concessions to get. However, often a challenge presents itself with the couple’s home which tends to be a coveted piece of marital property. There are a few different ways of dealing with this predicament, and some solutions which are more effective than others.
In a few unusual cases, the couple opts to retain joint ownership and treat the home as an investment property. However, more often the couple wants a final division of the home’s value. In these cases, the couple might simply wish to sell the home and divide the proceeds. This option is relatively straightforward and allows both individuals to walk away from the credit risks of a post-divorce mortgage.
How should a divorcing Louisville couple divide their home if one party wishes to obtain full ownership of the house after the divorce is completed? When this happens, that individual could buy out any equity in the home from the other spouse. This can be done by offsetting any marital interest in the property with other marital property.
It is then usually in the best interest to remove the non-resident spouse from the title of the property as well as any associated mortgage. If one spouse remains in the house and both parties remain on the original mortgage there is substantial risk to the credit of the non-occupying spouse in the event of missed payments. This can usually be prevented by the (new) sole owner refinancing the home in his or her name only.
Sometimes, the spouse who does not keep the home will purchase a new home before the divorce is finalized. If legal precautions are not taken, the new home could be legally included in property division. In order to avoid this, the other spouse would have to sign a quitclaim deed denying interest in the new property.
Kentucky’s marital property laws can be quite complex. How should a divorcing Louisville couple divide their home while protecting both parties interests? A divorcing couple may not have the resources to properly value and divide marital property on their own. This is why it is important to seek legal representation from the divorce and family law attorneys at Dodd & Dodd. We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.
