The family home it is often one of the most valuable assets a couple in Maryland owns. When it comes to property division in a divorce, what happens to the family home is very important, as it could significantly affect a person for years to come.
Sometimes, one party will keep the family home and buy out the other spouse’s share in the home or exchange it for equitable assets in the divorce. If this happens, the party keeping the home should make sure they have the financial resources to buy out their ex’s share in the home and refinance the home in their name only. In addition, the party keeping the home will want to make sure they can afford homeownership now that they are on a single income. For example, there may be a mortgage to pay, upkeep costs, property taxes and homeowners insurance. Owning a home can be very expensive and it is not something everyone can handle on their own.
For this reason, some couples choose to sell the family home and split the proceeds. However, deciding when to sell the family home is important. If the home is sold before the couple files for divorce, the court could perceive this as a “dissipation of marital assets.” If it looks like you’re selling the home to avoid having it be part of the marital estate, this could work against your subsequent divorce proceedings.
Some couples who do not want to keep the family home will wait until after they have filed for divorce to sell the home. Doing so can help the couple let go of the home emotionally, and it may provide the couple with the financial resources they need during the divorce process. There may also be tax benefits to waiting until the divorce is filed before selling the family home.
So, whether one spouse will keep the family home in a divorce or whether the couple decides to sell the home, it is important to understand how these decisions will affect each spouse legally and financially. These decisions can be difficult to make, especially when emotions are high.