When people in Kentucky decide to divorce, handling the family home can be one of the most complicated parts of the property division process. The marital home is often one of the largest single assets held by the couple. At the same time, unlike other substantial assets like retirement funds or investment accounts, real estate cannot be easily divided in two. Also unlike those assets, people often feel a deep emotional connection to the marital home, especially when children are involved.
Nevertheless, many couples resolve the issue by selling the marital home as part of the divorce. Proceeds from the sale can go to pay off any mortgage balance owed as well as provide funds to help each partner seek future accommodations. In some cases, however, one spouse strongly wishes to remain in the home. When a divorcing couple chooses this option, it is important to consider some key issues that could lead to financial problems if not addressed at the time.
The spouse remaining in the property may face an affordability issue. In the first place, he or she may need to buy out the other spouse’s equity stake; in a high real estate market, that could require substantial sums. In addition, he or she would need to maintain the payments on only one salary. In order to clarify the home’s ownership and associated rights and responsibilities, it can be important to refinance the mortgage and retitle the deed. These two issues should be handled at the same time to place the house firmly in the control of the remaining spouse only.
Dealing with the marital home is only one of the financial questions that can accompany a divorce. A family law attorney may represent a divorcing spouse to negotiate a fair settlement on a range of matters, including spousal support and property division.