Since the marital residence is the most valuable asset for many couples, it is important for them to carefully consider the most practical resolution regarding the home. The divorcing couple can either reach an agreement regarding the disposition of the marital residence, or a court can impose an order. Some of the options regarding the home include:
Selling the Property Now
The best way to determine the home’s value is to see what sales price it attracts. If neither party wants to keep the home or they are not in the position to afford to cover the costs associated with the home, the most practical solution may be to sell the home and split the proceeds. The proceeds may be split equally in some cases. In other cases, one party may have invested more funds into the property than the other or the property may have been acquired prior to the marriage. A Dupage divorce attorney may discuss possible implications related to this type of transaction, including the possibility of having to pay capital gains taxes.
Selling the Property Later
In some cases, it may be more practical to sell the property at a later date. The parties may have young children that they want to finish raising in the home. The market may be down. The parties may simply decide to postpone the sale until factors change. A Dupage divorce attorney may help draft a settlement agreement that establishes certain terms regarding a future sale.
Renting out the Property
Sometimes the potential rental income is more important to the parties than the home itself. They may agree to rent out the property to a mutually agreed-upon lessee. The rental income may be split between the spouses after satisfying any mortgage payment. In some cases, rental income is used to substitute or supplement spousal support. In other cases, one party may remain on the property and pay rent to the other spouse to satisfy the debt.
Keeping the Property
Another option that a Dupage divorce lawyer may recommend is for one party to keep the property. In this type of scenario, the other spouse usually has some interest in the property that must be compensated. The other party may want to trade his or her interest in the property for another asset. The spouse remaining on the property may decide to refinance the property and buy out the other spouse.
