divorce

Sometimes divorce is not a pretty word.  Especially if you're in the middle of one. It's usually quite rough. What makes it rough is figuring out child custody and dividing assets and liabilities. In most relationships the largest shared assets are usually real estate assets; either the marital home or investment properties.

The division of these assets can be intense, complicated, stressful and can be the hardest part of the divorce process.  Hopefully both parties can come to an agreement and arrangement that is equitable and fair. This drastically reduces court and attorney costs.

When the divorce is finalized, after mediation, or after the court divides the assets, the future of the marital home will be known. Sometimes when one party is awarded the home, they will 'buy out' the other party.  This can be done with awarding the party not receiving the home with more shared assets that equal their half of the worth of the home. It can be done with splitting the worth of the home so one party pays cash in the amount of half of the house to the other. It can be done multiple ways depending on how much equity is in the home and how much is still owed on the home.

One of the downfalls of this situation is that one party wants to hold onto a house they can not afford to live in.  They do this for many reasons but one may be an emotional one. They don't want to let go of the house they may have raised their children in or they don't want to leave neighbors. They willingly keep the house while the other party takes other assets that equaled the worth of the house and find a less expensive place to live. This can leave one spouse buried in bills and debt to keep the house running.

Often the best way to handle the situation is to sell the home and each move on and into their own separate homes. It may seem kind of harsh to suggest this, but during a divorce emotions are on high alert and the decisions made are usually very important and can be detrimental if made emotionally. 

A New York Daily News article about divorce and real estate division stated that one of the worst mistakes made while working out the details of a divorce and distributing property is that one spouse makes the emotional decision to keep the house and is therefore consumed in debt because he or she can not financially make it work with day to day living and bills. Because one spouse is determined to hold onto a house they can not afford, they are drained and in a stressful situation while the other spouse lives easier and less burdened with finances.

If you or someone you know is getting a divorce, I would be glad to help in this emotional time. I give professional yet compassionate service and I would love to help work out the real estate puzzle you or they may be facing.

Brought to you by Heath Harvey @ HeathsHomes.com