Should you keep the house after divorce?

March 13, 2013

Even the happiest couples can experience problems in their marriages. Small arguments can turn into resentment, and couples may decide that they no longer want to stay together. While it can be emotionally difficult to make the decision to move on, sometimes it is best thing to do.

Many people are not that familiar with what happens during a divorce. Some couples may be able to work together to resolve all of their issues, including any division of property and debts that the couple may have accumulated during the marriage.

Oregon, like many other states, distributes marital property equitably. This means that property distribution agreements must be considered fair to both spouses, and not necessarily split 50-50. Parties may try to come to an agreement on their own, but often property division matters are one of the more highly contested aspects of any divorce.

If the parties cannot find a solution, it will be left for the courts to decide. Parties may then have to demonstrate why they are entitled to certain items, and the court may issue a ruling that leaves both sides upset. One very important thing for couples going through a divorce to keep in mind is that once a property settlement is entered, it can be impossible to change. Courts may need to see evidence of a party concealing assets before it will agree to address later concerns.

Of all the assets that a couple may own, the fate of the marital home may be the most challenging issue to resolve. When home values were at all-time highs, couples would routinely battle over which spouse would get to keep the home. The resulting agreements would need to address any equity that had been built up over time, as well as any remaining mortgage debt connected to the property.

Now, even though values are slowly starting to rebound, many residences are worth significantly less than their original prices when purchased. Since so many homeowners are trapped into underwater mortgages, neither side wants to be saddled with the burden of home ownership.

If this happens, the couple may need to work together to find a solution to this problem. Some may decide to sell the home, agreeing to divide any remaining debt between the spouses. Other solutions may include having one of the spouses rent the home from the other for a period of time, which provides an opportunity to make use of the property while the divorcing is proceeding and perhaps allows the couple time to rebuild the value of the home. Refinancing is also an option, if the spouse who wants to remain in the home is able to afford the new monthly mortgage payment.

This is just one of the many concerns that you may have while you are considering a divorce. If you have questions, speak to an experienced family law attorney about your specific situation. Because each family is unique, you need to find the solutions that can best address your needs. While it can be difficult to handle some of the issues that can arise at this time, you need to know how the decisions you make at this time will impact your future.

Article provided by The Law Office of Thomas M. Brasier
Visit us at www.brasierlaw.com