Jump to Navigation

What happens to the marital home in a divorce?

One of the most difficult issues for many divorcing couples in Maryland is deciding what to do with the marital home. While Maryland state divorce law requires a fair and equitable division of all joint assets, selling a house and splitting the proceeds down the middle is not always feasible or practical. Negotiating a property settlement can be very complicated and the stakes are high.

One of the first things to do when deciding what to do with the marital home is to have it appraised. In some cases, both parties may agree on an appraiser to hire, but in others both parties may want to commission their own appraisals. It may be important for each person to involve their family law attorney in this process to ensure that the appraisal that is used is objective.

In some cases, when one of the spouses owned the home prior to marriage, it is also necessary for a real estate appraiser to determine what the property was worth before it became part of the marital estate.

Once fair market value is finally established, it is necessary to subtract existing mortgages to determine the equity. At this point, parties can decide with the assistance of their attorneys what to do with the home. If there is a significant amount of equity, it may be wise to sell the home and split the proceeds. If there are children involved, it may be preferable for the custodial parent to keep the home.

In cases without children, one of the parties may still want to keep the home for one reason or another. In such cases it may be possible for him or her to buy the other party out, or give the other party other marital assets in exchange. In order to decide what is best, it is important to consider children, tax implications, any debts and liabilities, and current and future housing needs, in addition to other things. Skilled attorneys should help divorcing couples negotiate appropriate settlement terms when it comes to these complicated matters.

Source: Forbes, "Seven Key Points Divorcing Women Need To Know About Real Estate And Real Estate Appraisals," Jeff Landers, Jan.22, 2013

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Make A Payment
Distinguished TM AV Lexis Nexis Martindale Hubbell Peer Review Rated For Ethical Standard And Legal Ability
Super Lawyers Top Attorneys In Maryland | 2012
Subscribe to this blog's feed