One of the biggest issues in property division during a divorce is what to do with the marital home. There are some options depending not only what the couple wants to do, but also how the divorce is being handled by the parties. Some Utah couples will be able to sell their homes and some will make a deal so that one party can keep the home.
If the parties have decided to sell the marital home, they will split the proceeds of the sale and move on rather easily. On the other hand, if one party wants to keep the home, he or she can basically “buy out” the other party by refinancing the home and giving the other party half of the equity in the home. However, in today’s real estate market, this may be easier said than done. When a home can’t be sold for a profit, things can get more complicated.
Some couples are willing to take a loss on the marital home in order to move on with their lives as quickly as possible. Couples whose divorce is friendlier may decide to wait until they are able to sell the home for a profit. It just depends on how willing the couple is to work together in order to get the home sold for a profit.
When one party wants to keep the house, but is unable to refinance, it could come down to how well the parties are getting along. If the parties are in the middle of a contentious divorce, it may come down to the court making the decision regarding the house. If the parties are working together and the divorce is amicable, they may be able to work something out that will benefit both parties over time.
No matter how the parties decide to deal with the marital home, it is one of the biggest issues in many Utah divorces. Each party will have to decide what course of action will best serve not only their family, but their finances as well. No matter what kind of divorce a couple is having — amicable or contentious — this major asset will have to be disposed of one way or another as the parties prepare to part ways.
Source: newsday.com, Your Finance: Divorce and the marital home, Geoff Williams, Oct. 9, 2013