The family home can be one of the most emotionally significant and financially valuable assets held by a divorcing couple in New Jersey. Unlike purely financial assets like retirement funds or bank accounts, it is far more difficult to equitably distribute the marital home. As a result, one of the most popular solutions for the home during a divorce is to put it up for sale. The purchase price can be used to pay off the remaining mortgage before the balance is divided between the two divorcing spouses.
Many people feel a deep sense of emotional connection to the family property. This is especially true if they are parents and the children have grown up in the home. One spouse may strongly want to keep the family home in the divorce. However, this can be a complicated process, so there are some critical steps to keep in mind when taking this route.
The remaining spouse will generally need to buy the other spouse out of the home, which can be difficult if the couple has a significant equity stake in the home that towers above their other assets. In addition, it can be more challenging to afford monthly mortgage payments on only one salary. Even if this is workable at the time, it is important for the legal paperwork to be handled properly. The mortgage should be refinanced into the name of the remaining spouse and the deed transferred as well; otherwise, the other spouse will remain tied to the house, with unwanted and unexpected rights and liabilities.
Those who are going through a divorce may find the financial elements of a separation challenging, especially since they carry long-term effects for both spouses’ financial health. A family law attorney can help divorcing spouses to protect their interests during property division and achieve a workable settlement.