People preparing for divorce in Kentucky typically have numerous issues to discuss with their spouses. Some couples already have marital agreements with each other that outline matters related to property division and support. Most couples, however, have to negotiate those terms when they decide to divorce. If they cannot settle their own property division disagreements, then they may need to take the matter to family court. The assets worth the most tend to spark the most intense disagreements during divorce negotiations.
The home where spouses live together might be the most valuable asset they share, and they could easily end up fighting over it. The three steps below can help people reach an appropriate solution for addressing this high-value asset.
Considering family circumstances
The first step when addressing a marital home is to really evaluate the situation as objectively as possible. Unique details of the family situation can influence the right way to handle the marital home. For many couples, child custody arrangements are the most important factor when deciding who stays in the marital home. For others, the ability to afford a mortgage or the physical capability of maintaining the property can be the determining factor when making decisions about the marital home. Being realistic about one’s finances and abilities can help people set achievable goals.
Determining the home’s value
Regardless of what someone’s intentions are for their marital home, they need to know what it is worth to reach an appropriate arrangement with their spouse. Couples often need the assistance of an appraiser or real estate agent to determine what the current fair market value of their marital home is. Home values tend to fluctuate, and only those who know what the home is currently worth can secure their fair share of equity during property division negotiations.
Finding ways to offset home equity
There are generally three ways to address the division of home equity in a divorce. The first involves selling the home and splitting the proceeds in a specific manner. The second involves one spouse refinancing and withdrawing equity to compensate the other. The third entails using other marital property or marital debts to balance out home equity. Spouses do not necessarily have to directly divide home equity so long as they account for its value when setting other property division terms.
Spouses with appropriate goals may end up feeling satisfied with the terms set for property division matters. Having a plan for addressing the most valuable marital resources can limit the conflict that arises during a divorce.