What happens to the Marital house in Divorce? Should you sell?
Marital home is the house you share with your partner(husband or wife), and children, if you have any. It may be the house you lived in before your marriage or a house you and your partner bought after the wedding. Most of the time, the marital home is the most valuable and meaningful asset owned by the couple. Question is, what happens to the marital house in divorce?
Trivia:
Did you know? Based on Georgia Code Section: 19-5-5, To file for a divorce in Georgia, at least one spouse needs to be a resident of the state for six months before filing a petition for divorce. Divorce in Georgia takes minimum of 6 months. If you have children, you must attend parental guidance classes before receiving the final divorce decree from the judge.
Click here for legal grounds for Divorce, Click here to find out how to file for Divorce in Georgia.
What Happens to the Marital House in Divorce?
Like every other asset, your home must be divided to both parties. Question is how. There are many possible answers here: One of you may stay, two of you may stay, or neither of you will
1. Two of you will stay.
Co-ownership of the home is often chosen by couples who have children. This option is about being a good parent as they do not want their children to move out. They can make a schedule which one shall stay with the children for a period of time, and then the other party after. They can keep taking shifts until the children are at the right age.
On this option, it shall be understood and agreed upon that the full amount of the mortgage on the house will appear on both spouses’ credit reports. This way, since making payment for the mortgage is equally shared, the whole family is secured that the property won’t go into foreclosure, or both parties credit reports will be affected.
In addition, each spouse shall agree that for as long as they co-own the home, his or her financial future will continue to be affected by the decisions of the other, particularly those directly involving the property.
2. One of you will stay.
In this situation, one party will buy the other’s share of the property. To do so, the house should be appraised by a certified real estate appraiser to determine fair market value. Parties can also agree on a fair market value of the home. Any outstanding mortgages on the home shall be deducted. Once the value is determined, the person keeping the home will need to pay the other person his or her share of the value.
The agreed amount may be paid immediately, paid over time or offset against other assets. The person keeping the property will also need to refinance it
If both parties want to retain possession of the property, and only one can keep it, the matter must be decided by a judge.
You and your spouse can also reach your own divorce agreement dividing up marital assets, including the family home. However, if you leave matters up to a judge, the parent with custody of minor children will probably get to stay in the marital home. Source here
3. Sell the property, neither of you will stay.
If both parties can’t afford to keep and maintain the home, or neither party want to stay, then your option is to sell.
This is not simple. It will cost time and money. Plus, it may cause conflict between you two: from choosing and hiring a real estate agent, determining the asking price, doing minor repairs and painting for the showing of the house, reviewing all the offers, and finally, dividing the cash after being sold.
OR, you can skip all these if you consider selling to a Real Estate Investor.
You may choose payment option suitable to your needs or situation. Real Estate Investor can pay the existing mortgage as payment. You also don’t need to repair and make it presentable as he will buy it on its as-is condition. Some can even close in as a fast as 7 days. And with fast closing, both of you can now move out of the house and move on.
If you are interested in selling your home to a cash buyer or a Real Estate Investor, call us today 678-792-5449 or sign up here.
For detailed answers for almost all of your questions regarding Marital Home and Divorce, click here.
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