On behalf of Stange Law Firm, PC posted in Property Division on Thursday, September 19, 2019.
Divorcing couples often struggle to figure out how to divide their marital assets. Successfully divvying up this property is often dependent upon accurate valuations and a firm understanding of one’s post-divorce financial goals. Although most couples are able to fairly divide retirement and bank accounts as well as pieces of personal property, the marital home is an asset that often brings up a lot of issues.
There are many ways to handle the marital home during the property division process. One of those strategies is for one party to buy-out the other so that the purchaser becomes the sole owner of the property. While this may seem like one of the best ways to secure a residence while breaking away from a spouse, it can present its own problems that must be competently handled in order to reach a favorable outcome.
The biggest problem here is usually coming up with the funds to buyout the other party. Depending on how much is owed on the mortgage, this buyout amount could be tens or even hundreds of thousands of dollars. Although refinancing a mortgage in one spouse’s name is an option, this may require securing a new co-signer on the loan and utilizing alimony to help demonstrate that one has sufficient income to qualify for the mortgage amount in question.
A quit claim deed is often needed, too, to ensure that title to the property is actually transferred to the spouse who is retaining the house. If this type of arrangement doesn’t work out, then it may be time to consider selling the residence and splitting the proceeds in a fair fashion.
Divorce can be complicated in a number of ways, including financially. Property division can be frustrating, stressful, and overwhelming. This is why many Midwesterners benefit from the assistance of a skilled legal advocate who can help argue for their best interests throughout divorce proceedings.