Many couples are excited when they purchase a home. This is often the biggest asset they own. It’s also one that can cause issues if the couple divorces. In the absence of a prenuptial agreement that covers the home, the fate of the real estate will be determined during the property division process.
New Jersey is an equitable division state, which means that assets are divided based on what’s fair and not necessarily what’s equal. There’s a wide berth for the options regarding the marital home.
One spouse buys out the other
One party may buy out the other. This is often done by dividing the other assets to balance out the home. It might be necessary for one spouse to pay some cash to the other one. Refinancing the mortgage is probably needed.
Sell the house and split the profit
You may opt to sell the home and divide the profit from it. This enables the mortgage to be satisfied so that both parties are able to have a clean split from the debt of the home.
Co-own the home
You and your ex might opt to co-own the home. This could allow the children to remain in the home. A contract must be drawn up regarding who must pay for what, how expenses are split, and how profits are divided. The more detailed this contract is, the less of a chance there will be disagreements in the future.
The property division process in a divorce can be a challenge. Anyone who is going through this should be sure they think carefully about their options. It’s helpful to have someone on your side who is familiar with this process so they can assist you, which can reduce your stress so you can make decisions that are in your best interests.