Buying a house can be one of the most significant investments a couple makes during their marriage. Unfortunately, this means that the fate of the marital home can also be a significant source of conflict in divorce. What should you know about what could happen to your home during property division?
What determines whether the house is part of property division?
In Georgia, if a house was purchased during the marriage, it is typically considered marital property. This holds true regardless of whose name is on the title. As marital property, the court will divide the house along with other property during divorce.
Georgia follows the principle of equitable distribution for marital property in a divorce. The court will divide property according to what is equitable or fair, based on factors like your income, your contributions to the marriage and each spouse’s needs. Depending on your situation, this could result in one spouse receiving a larger portion of the property than the other.
What does that mean for you?
Some couples can work together to determine what happens to their home, while others need the court to make this important decision. In either case, there are several potential outcomes:
- Sell the house: Often, selling the house and dividing the proceeds can provide a more straightforward solution. However, the time it takes to make this sale has the potential to delay the divorce process.
- One spouse keeps the house: If one spouse wants to become the sole owner of the house after divorce, they will have to buy out the other’s equity. This typically involves refinancing the home solely under the name of the spouse who will keep the house.
- Share the house: Sometimes, divorced couples may choose to continue as co-owners to keep their child in a familiar home or delay the sale of their property until they can receive a better sale price. Co-ownership can be complicated, and couples should be sure to discuss how they will handle issues like maintenance costs.
In some cases, temporary arrangements might be necessary during the divorce process. For example, one spouse might move out while the other stays in the home and keeps up with the mortgage and utility payments. These arrangements are usually temporary and meant to provide stability until the couple finalizes their divorce.
The fate of a house during property division can significantly impact each person’s financial and personal situation post-divorce. Taking the time to understand the legal landscape and seeking the right support can make a considerable difference in achieving a fair and equitable outcome for both parties involved.
