Many people in Kentucky feel deeply attached to the family home, even after they decide to divorce. They may want to keep the home even after the divorce is finalized. It is often important for people to engage in financial planning in order to protect their ability to keep the house after a split. There are several ways that people can handle dividing a home in a divorce, and one of the most common is to simply sell the house, pay off the mortgage and split the proceeds as part of the property division process. When the home is important enough that one person wants to keep it, other solutions may be needed.
In some cases, both parties can come to an agreement to keep the home at least temporarily after the divorce. This can allow kids to go through milestones or finish out a school year. Divorcing spouses could negotiate continued joint ownership of the home with proceeds to be divided later on at the time of a sale.
When one person wants to keep the home alone, it is often necessary to refinance the mortgage in the name of that spouse alone. The spouse who wants to remain should obtain a bank preapproval to ensure that the goal of keeping the home is feasible on a solo basis. In these cases, the remaining spouse will need to buy out the other partner’s equity. In some cases, this could be folded into the new mortgage. Other spouses could take a smaller share of other marital property in exchange for the home equity.
The marital home can be a major issue to be dealt with during a divorce. A family law attorney may work with a divorcing spouse to negotiate a fair settlement on property division, spousal support and other matters.