Who gets the family home in a Louisville divorce? This is a complex legal issue and it is best to seek the counsel of an experienced proven Louisville family law attorney for guidance and insight.
The equity in your family home is marital property. Marital property is to be equally divided between the parties. If the home was owned by one of the spouses prior to the divorce a complicated financial calculation will be required to determine the amount of the marital property interest in the home versus the “separate property” interest of the spouse who brought it into the marriage.
One of the most common misconceptions about the family home in a Louisville divorce regards how underlying financing is affected by the divorce. When a party is awarded the house the other party the judgment requires the other party to execute a deed of transfer. This document removes one party from the title, placing the home in the sole and separate ownership of the other party.
The party who is keeping the family home is responsible for all mortgage payments, taxes, maintenance, HOA fees and associated costs of ownership from that point.
The surprising fact for many people is this: there is no formal legal requirement for the party who is awarded the house to refinance it to remove the non-custodial party from the mortgage. This creates an ongoing contingent liability which can impact your credit and your ability to obtain financing on your own home in the future.
This is an area where those who attempt to handle their own divorce make mistakes that cost them dearly down the road. The settlement agreement must contain the correct legal language to ensure the court has continuing jurisdiction over the property until the underlying financing is paid in full.
This is crucial, especially if you are the party who has relinquished title to the property. This allows you to seek an order for the property’s sale or for the house to be awarded to you if the other party is not able to keep up the payments.
This is one of the many reasons it is so important to have the advice and counsel of the experienced, proven Louisville and Jefferson County divorce and family law attorneys at Dodd & Dodd. We invite you to review the recommendations of our clients and contact us or call 502-584-1108 to schedule an appointment.
