After separation and divorce, you and your ex-spouse will have to a lot of decisions to make, and the process is oftentimes lengthy, especially when legal procedures are involved. One major thing you will think about is how to divide your property. Property is central to any divorce settlement and is usually a way for you to break any financial ties with your ex-spouse. One of the most significant assets or properties you and your ex-spouse will have to think about in your property settlement agreement is your family home. Knowing what happens to your family home when you separate and get a divorce is important. Read on to find out.
Dividing The Home
There are two major ways to do this. First, either of you may decide to buy the other party out and keep the property. The home can also be sold, and then the proceeds will be divided between you and your ex-spouse. If you have children out of the marriage with your ex-spouse, whomever stays with them may want to remain at the house to maintain continuity. In this instance, then other assets may be considered in order to even up this distribution. If a mortgage or housing loan encumbers the property, the spouse who seeks to stay must demonstrate his or her ability to re-finance the loan in their name to excuse the other from debt.
Valuing The Property
If you can't come to an agreement with your ex-spouse on how to divide your marital home, the court can order for the property to be valued for settlement purposes. Experts, usually surveyors or local estate agents, will be used to determine the value of the property based on the current market value. A single expert acting on instructions of both spouses is oftentimes preferred to avoid further conflicts. However, it is not compulsory, and either of you can choose your own expert to work separately. In the event that you use different experts and there is conflicting evidence concerning the value of the property given, then it remains upon the court to determine which evidence is preferred.
Threats To Sell
If either party is threatening to mortgage, sell, or even give away the property before you finalise or formalise the settlement agreement, the other party can seek an injunction (court order) to prevent this. However, it is important to note that one may only threaten to sell if the home is solely in their name.
For additional information, consult with a family lawyer.Share