What Happens To The House In A Divorce?
Transcript
So who gets the house, and how do you avoid losing it in a divorce?
Hi, everyone. I’m A.J. Grossman, CEO and Managing Attorney with LeapFrog Divorce. My entire legal career has been dedicated to helping people with divorce and paternity cases. At LeapFrog Divorce, we do divorce better.
Okay, let’s go.
For many people, a home is their most valuable asset. If it was purchased while you’re married, it’s considered a marital asset under Florida law. And because it is a marital asset, the value has to be equitably or fairly divided between you and your spouse.
Sometimes one spouse wants to keep the house. In that case, the person who wants to keep the house will need to buy out their spouse, which simply means they will have to pay their spouse one half of the equity in the home.
Many years ago, when home values were, quote-unquote, underwater, they were actually worth less than the home’s mortgage balance. This meant that there was negative equity. In that case, the negative equity became a debt that had to be fairly divided.
Fortunately, we don’t have that situation today, at least not right now.
If neither spouse wants to keep the house, or the spouse who wants to keep the house cannot qualify to refinance the home, it must be sold. So when this happens, the spouses typically split the net proceeds from the sale of the house.
Unfortunately, sometimes the spouse who remains in the home during the divorce decides he or she won’t pay the mortgage, the utilities, or the taxes for the home. If that happens, there’s a risk of the home going into foreclosure.
If you don’t want to lose your home, don’t let this happen. If you’re faced with this type of situation, contact a lawyer immediately so they can begin working to prevent your home from going into foreclosure.
Some people think they have to move out when a divorce starts. That’s simply not true. There’s no law requiring either spouse to move out of the home.
Some also think that if one spouse decides to leave, that they have somehow abandoned the home and have given up their right to any of it. That’s also false.
If you’re going through a divorce and decide to leave your marital home because you simply can’t live in the same house with your spouse, you’re not abandoning your home.
Well, that’s all for now. I hope this information is helpful for you. If you have any questions or need help, please give me a call or send me an email. I’d be happy to help.
Have a wonderful day.
