Property division issues when homeowners divorce
Ohio homeowners who may be seeking a divorce may be interested in some of the issues they could face dividing their marital property. When a home is involved and both parties are signed onto the mortgage, equitable division of the assets is often more difficult.
When a couple has filed for a divorce or legal separation, both parties are still responsible for payments. Each person’s credit rating should be monitored, due to the fact that whoever holds onto the home will most likely have to refinance it in their name only. This means that any charges on their credit report that are inaccurate should be disputed immediately.
They should cash out enough equity to pay back any deposits contributed by the non-owner ex-spouse, as well. Generally, that person will also get assets equivalent to the rest of the home’s value in order to keep the asset division equitable. However, this can be changed by the couple’s divorce settlement. When the house is not worth the value paid for it, gift money from family members can be used to make up the difference. In other situations, it is better to simply sell the house and split the proceeds between the two ex-spouses. The most important point is to realize that simply getting divorced will not end the responsibility for a home mortgage that a person has signed onto, even if they stop living in that home.
Property division issues may be complicated, particularly in these situations where real estate is involved. An attorney may be helpful in explaining to a client how an equitable division of the former couple’s property may be achieved through the negotiation of a comprehensive settlement agreement.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon , July 09, 2014