Navigating Divorce and Your Real Estate Investments

Your home is often the most significant asset in your marriage, but it can become a source of conflict during divorce due to its financial and emotional implications. It's essential to grasp both your legal rights and financial situation before making any decisions. Additionally, consider the needs of your children, which may also influence your choices.

The house is an asset and is subject to division according to your state's property laws. Understanding what percentage of the house you own and whether the court might award it to you or your spouse is crucial. Since laws vary by state, we strongly recommend you investigate the relevant regulations. Often, practical factors dictate 1) who retains the house, 2) the buyout conditions, and 3) whether the property will be sold to an outside party.

If you wish to keep the house, you’ll typically need to “buy out” your spouse, usually with a new mortgage. However, you might find it challenging to secure a larger mortgage based on your post-divorce financial situation (including alimony and child support). Check your state's resource page for guidance. If a new mortgage isn't feasible, the house will likely be sold, and you'll be entitled to your share of the equity.

We recommend collaborating with your spouse to arrive at the most beneficial decision.

Divorces are seldom straightforward, and most involve disputes over significant assets. For many couples, real estate is the largest shared asset. Whether it’s the marital home or an investment property, those facing divorce often wonder, “What happens to real estate during a divorce?” For additional details, visit www.myhomeseekers.com/divorce-info.