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Options for dividing a house in divorce

On Behalf of | Feb 2, 2017 | Property Division |

There are several pitfalls that Pennsylvania homeowners who are getting a divorce should avoid. One of those is that if one person plans to remain in the home, that individual should keep in mind that it might present both financial and emotional challenges. People should make sure they will not be bothered by painful memories while in the home and also that they can afford to live there on one income.

If one person does decide to keep the house, the couple must then decide whether they will continue with joint ownership or if one will buy out the other. In the former situation, they should be aware of any tax implications. In the latter situation, it might be necessary for one person to refinance. Without doing so, the other party might remain on the mortgage, and this could cause problems for them with lenders if they want to buy another home after the divorce.

If neither person wants to live in the home, the couple may decide to sell it. They can split the proceeds although the split may not be equal. For example, a person who made the down payment on the home might receive a bigger proportion of the proceeds.

Complex property division could be a process that involves splitting up investments, out-of-state or even foreign real estate, retirement accounts and businesses among other assets. People may be concerned that their former partner is hiding assets in offshore accounts or in other ways, and this may require a more aggressive approach by legal counsel. However, in an amicable divorce, it might be possible to negotiate property division outside of court.