When people in Virginia consider divorce, one of their major concerns may be how to handle the family home. There are different ways for divorcing couples to divide the home, and they can vary depending on home equity and whether children are involved. In some cases, both spouses decide to sell the home and divide the proceeds as part of the asset division process of the divorce. In other cases, spouses make an agreement to keep the home temporarily in order to give the children time to adjust.
Some spouses want to keep the family home themselves even after a divorce. When one spouse wants to stay in the home, there are a number of financial considerations that can come to the forefront. One of the first steps toward working through these financial issues is determining the home’s market value. In general, the spouse staying in the home will need to buy out the other spouse during the divorce process, either by obtaining an additional mortgage or exchanging other items during the property division settlement. The amount of equity in the home will determine how much needs to go to the other spouse and how much the remaining spouse will need to refinance the mortgage.
There are also some other expenses that can come with transferring the home, including fees for loans and title changes. It is important for the spouse who wants to remain in the home to obtain a pre-approval for the additional mortgage needed in order to ensure that this is financially feasible.
The family home can have a great deal of emotional weight, but it is also a major financial topic in a divorce. A family law attorney may help a divorcing spouse negotiate throughout the property division process, including dealing with the marital home and other real estate issues.