For many couples, their home is the most valuable asset they have. The marital home not only represents financial stability, but emotional stability as well, especially for the children. Therefore, when couples are on the brink of divorce, similar questions arise:
What will happen to our home once the divorce is finalized?
Who will live in the home during the pendency of the divorce?
We’re upside down on our mortgage, how will that affect the final disposition of the property?
My name is not on the deed to the marital home, what are my rights?
The ultimate division of marital property is determined by the type of jurisdiction that governs the divorce. All states in the United States are either an equitable distribution jurisdictions or community property jurisdictions. Washington, D.C. and Maryland are both equitable distribution jurisdictions. In equitable distributions states, the courts decide each spouse’s interest in the marital home and all marital property by using a three step process that evaluates several factors related to the marriage.
The first step is to identify all martial property. This involves determining many things about the marital asset, including when it was acquired, how it was acquired, by whom it was acquired, to name a few. The second step is to value the asset or assess how much it is worth in the fair market. The final step is to distribute the assets to the spouses. This is the most complicated step and requires a detailed look at all factors related to the marriage. In the case of the marital home, the two most common options are to (1) sell the home and split the proceeds appropriately; or (2) allow one spouse to buy out the other spouse and remain in the home.
The nuances and complexities involved with settlement of or disposal of the marital home can be quite dense, with legal as well as personal implications and impact for the parties involved. Consultation with a knowledgeable and skilled attorney is highly recommended when property is at issue in the dissolution of a marriage.
DISCLAIMER: The information contained herein is intended to be legal information not legal advice. No attorney-client relationship is established by any actions or inactions taken.
