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3 questions to ask when deciding who keeps a divorcing couple’s home

On Behalf of | Aug 1, 2024 | Property Division |

Divorcing couples in Indiana have to settle numerous economic matters. Property division can be one of the most challenging elements of a divorce. Spouses may have a hard time finding fair and reasonable solutions for their high-value shared property.

The home where they live together holds not just memories but much of their marital wealth. Real estate holdings can prompt strong emotional reactions during divorce. People sometimes make irrational choices because of their feelings of attachment to the home or their concern about losing home equity.

Under Indiana’s equitable distribution rules, the person who keeps the house doesn’t retain all of its value. Each party should receive a fair portion of equity or other assets worth a similar amount. Deciding whether or not to seek retention of the home in a divorce can be difficult. The three questions below can help people determine whether staying in the home is the right goal to set during their divorce.

Are there pre-existing attachments?

Sometimes, one spouse may have purchased the home prior to marriage. It might also be a family heirloom that they purchased or inherited from someone they love. In scenarios where there is a source of attachment other than marital cohabitation, that pre-existing attachment could be a particularly strong reason to seek continued possession of the property.

What are the demands of homeownership?

Another key concern is someone’s ability to pay for and maintain the property. One person refinancing on their own might qualify for a smaller mortgage than a married couple could afford. Between their income and their credit score, they may not be able to refinance the property without a spouse. The physical ability and time required to maintain the property are also considerations. Unless someone can afford to outsource that work, they need to ensure they have the ability, knowledge and time to take care of the home and the surrounding property.

What are the custody arrangements?

For many couples, custody arrangements for their children have a strong impact on property division choices. Keeping the children in the same school district and a familiar environment is often in their best interests. The custody arrangements that the parents have negotiated might potentially influence how they handle the marital home.

For some people, seeking to stay in the home truly is the best solution. For others, securing equity and using it to fund a fresh start is the better choice. Setting reasonable property division goals in the early stages of an Indiana divorce can help people prepare for a better future.