Divorce can upend many aspects of your life, and many people wonder whether this process will mean moving to a new home. The question of whether divorce means you will lose your house is a common one, but the answer is not universal. What should you know about the fate of your home in a divorce?
What happens to your home depends on when you acquired it
In most cases, the family home is marital property if the couple purchased it during the marriage. This means both spouses have a legal claim to it, regardless of whose name is on the deed. Even if a person acquired their house before their marriage, both spouses may also have a claim on part of the equity of their home if they used shared funds to pay for the mortgage or remodeling projects.
However, if only one spouse owned the house prior to the marriage and kept it separate from marital funds, it might be separate property. This may also be the case if one spouse received the house as an inheritance. In this case, that spouse would be the sole owner after divorce.
What might you do with your home?
If your home does fall into the category of marital property, that does not necessarily mean that you will lose the house. Instead, it means that you will divide that equity alongside all of your other possessions.
In Georgia, the court divides a couple’s property based on what is fair in their situation. A fair outcome can look different for each family, however, and couples may choose to handle their house in a variety of ways:
- Sell the home: Selling the home and splitting the proceeds provides both parties with a fresh start and prevents any disputes over who gets to keep the house. However, waiting for this sale may mean it takes longer to finalize your divorce.
- One spouse keeps the house: In some cases, one spouse may buy out the other spouse’s share using savings or other assets. This involves refinancing the mortgage in the buying spouse’s name alone.
- Co-ownership: In some cases, ex-spouses may choose to remain joint owners of the house. This allows you to wait for a better sale price, rent out the property or keep children in a familiar environment for a time. However, it requires a high level of cooperation between the ex-spouses.
When choosing between these options, it is crucial to separate emotional attachment from financial decisions. While the house may hold sentimental value, it is important to consider if keeping it is financially viable. Consider the long-term financial implications, including the ability to afford mortgage payments, maintenance and property taxes on a single income.
The fate of your house is one of many important decisions you make during divorce
While divorce does not automatically mean you will lose your house, it does mean that you will have to make decisions about its future. Understanding your options and seeking legal advice can help ensure that you make the best choice for you and your family.