It is not terribly difficult to divide furniture and personal possessions in a divorce, but it is difficult to divide a house. When a couple gets divorced, they cannot just cut the house in half and each take the side they prefer. Instead, one spouse or the other will get the house, or they will end up selling it. If you are about to go through a divorce and are wondering how this works, here are three vital things to understand.
It is easier if there is no equity
If you and your spouse own a house, you should find out how much equity it has before you make any decisions. The equity in a house refers to the difference between the current value of the house and the balance you owe on the loan. If you have more than one loan on the house, you would need to include the balances of all the loans. If there is very little equity, it is so much easier to split a house, as there is less to divide. When there is a lot of equity, one spouse usually has to buy the other one out, and this is where it gets tricky and difficult.
It is easier if you can get a loan in your name
Secondly, dividing a house in a divorce is also a lot easier when the spouse who wants the house can get a loan in his or her name. If the house is in both names, this will be a necessity, as the spouse who does not get the house will not want his or her name on the loan after the divorce is through. If the spouse who is keeping the house cannot get a loan on his or her own, letting this spouse have the house is not a good idea.
It is sometimes better just to sell the house
When there is a lot of equity in the house, or when the spouse keeping the house cannot get a loan, it is much easier to just sell the house. If you sell the house, you can easily divide the proceeds from the sale between both of you, and you can both move on much easier from there.
If you are not sure how to handle the division of your house in your divorce, you should talk to a divorce lawyer. A lawyer will have options for you to consider and may be able to recommend the best path for you.
For more information on family law, contact a lawyer like those at the Law Office of Greg Quimby, P.C.