When Does House Division Become More Complex?

| Dec 12, 2020 | Firm News |

The risk that you run during a divorce is that New Hampshire is an equitable distribution state, which means in a contested divorce, a court will decide what is fair in terms of distribution. The split of assets could very well be 50-50, but there is no guarantee. Generally, marital property is considered the property acquired during the marriage span, with separate property being that which was owned before the marriage. Though New Hampshire defines the difference between separate and marital property, both property forms may be subject to division in the divorce.

Finding a satisfactory resolution

Divorce can easily go from two spouses working on an agreement to a contested situation. If one of the spouses wants to retain a home, this can cause numerous complications for asset division. For most couples, real property constitutes their most considerable assets. If one spouse wants to stay in a house, there may not be enough other assets to make up a value equal to the assigned or agreed-upon distribution scale. Here are some of the ways that homes can be divided in a divorce:

Selling the home: Putting a house on the market may be the most straightforward resolution in many scenarios. The proceeds from that sale can be split equitably.

Refinancing: If one spouse wants to stay in the home, this event becomes trickier if that spouse has primary custody of the children. In some circumstances, it makes sense to refinance a home and use the modified mortgage to present the capital necessary to pay the non-residing spouse’s share of the house’s value.

Selling later: The spouses keep each of their names on the title and sell the property later or at a predetermined time. This arrangement can be a great option if the spouses are on good terms, but some couples want as clean a break as possible in a divorce. The sale date often coincides with the children leaving home for college around the age of 18.

Finding the right method for your situation

No one wants to have to go through the effort or time involved in dividing such a complex asset, but you need to pursue the property that is rightfully yours. The adjustment from living as a couple to a single person can have many financial consequences. Those consequences may be easier to transition to if you receive the property you need.