While no two couples are exactly alike, it’s fair to say there are certain types of assets that commonly need to be divided when a marriage ends in divorce. Real estate is usually of the greatest value. In the state of Kentucky, any real estate acquired during the marriage will be considered “marital property.” Under some circumstances, so too will the increase in value of an asset brought to the marriage by one of the spouses. Most commonly the real estate that will need to be addressed is the family home. There are several situations that might arise.
When a spouse wants to keep the house
The first is that one party stays in the house and takes over making any necessary payments, once the divorce is final. This approach necessitates that the spouse who keeps the house have enough money to pay for it.
Second, in an effort to secure the money necessary to pay off the other spouse, an individual might seek additional funds in the course of refinancing the mortgage.
If a party does not have the funds to buy the house he or she might stay in the house but the other spouse own it. In this situation, the occupying party would pay rent to the owner.
When selling is the answer
There are times when selling the house and dividing any profit received equitably is the best way to go. In this situation, once costs such as taxes are paid off, the parties divide the net profits.
Sometimes it makes sense to hold on to the property for a while and then sell it later. Until the house is sold one spouse might continue to live there or, in the alternative, it could be leased.
If you are divorcing the best course of action will depend on your specific circumstances. A divorce lawyer can help determine the best way to proceed.