What to do with the Family Home After Divorce
When dividing assets during a divorce, many couples encounter obstacles regarding the marital home. Often the home is the most valuable asset a couple owns and each partner has a financial interest. There are a number of options a divorcing couple can consider regarding the sale of the primary residence. There might be tax advantages to selling the home upon divorce or deferring sale with certain conditions in place.
A couple might defer the sale of the marital home if:
- The couple has small children and the court determines it is in their best interest not to move at this time
- The current economic conditions are not favorable for sale
- One spouse wishes to buy the home from the other but requires time to secure a mortgage
- One spouse wishes to remain in the home and both spouses agree to division of equity at a later date
If the home is a family homestead, and one spouse’s family has resided in it for a number of generations, it might not be considered marital property. If this has not been specifically agreed upon in a premarital agreement, this might result in a deferment of sale until a judge can rule on its disposition.
If the sale of the marital home is deferred, the non-resident spouse might be ordered to continue to pay property taxes, maintenance costs or a share of the mortgage until the time of sale. Likewise, if both spouses retain a shared interest in the home for a period of time, the couple must reach an agreement as to the respective share of profit from the eventual sale.
If you are divorcing and own a home together with your spouse, consult a divorce attorney. Your attorney can assist you in dividing your marital property in a manner that is suitable for you and in the best interest of your children. For your free consultation call the Buffalo Law Offices of Randy S. Margulis and Associates at 716.886.9600 or contact us online.