Dividing real estate in a divorce can be a complicated process, especially when the property holds significant value. You may have owned the property together for years or inherited it before marriage. Regardless of the circumstances, the goal is to ensure a fair division while considering both financial and emotional aspects.
Factors to consider when dividing real estate
When dividing real estate, the first step is understanding what qualifies as marital property. In Maryland, any property acquired during the marriage is generally considered marital property, even if it was purchased in one spouse’s name. However, separate property, such as assets one spouse owned before the marriage, is not subject to division.
Property valuation and appraisal
Valuing real estate is essential for a fair division. It’s important to get an independent appraisal of the property’s worth, especially if there are disagreements about its value. The appraisal considers the property’s market value and other factors like location, size, and condition. The appraiser may also assess how any improvements or debts affect the value.
Options for dividing real estate
Once the property is valued, there are a few ways to divide it. One option is for one spouse to buy out the other’s share of the property. If the home is the primary asset, this can be a good solution, especially if one spouse wishes to continue living in the home. Alternatively, the property may be sold, and the proceeds divided between the spouses.
Considerations for keeping the home
If you wish to keep the home after divorce, you’ll need to consider how to handle the mortgage, property taxes, and upkeep. It’s important to assess your ability to financially support the property on your own, including any costs associated with refinancing or maintaining the home.
Dividing real estate can be one of the most emotional and financially significant parts of a divorce. Understanding the legal aspects and your options will help you make informed decisions that benefit your long-term financial stability.
