The marital home was once a simple way for both spouses to receive some funding for their replacement home or refinancing an existing mortgage. Since the collapse of the housing market within the past decade, that is no longer as much of a reality as it seems.
Should you keep the marital home?
Both divorcing parties now have difficulties deciding how to divide up the value of their marital home. While looks easy, most homes now experience a depreciating value. When a home’s value depreciates, it’s difficult to get any value out of the home in the first place. So, when that value is divided up between both parties, there’s literally no value to share. Both parties may even be unable to cover the costs for maintaining their home and/or mortgage payments at the time of the divorce.
That usually raises the following question: should you give up the martial home?
Most divorcing parties actually end up keeping their marital homes under joint ownership during and even after the divorce process. This usually happens when the home’s value has depreciated to the point that selling it isn’t an option (at that point in time).
The conditions of keeping the home
According to Michael Dreishpoon, an aggressive personal injury lawyer, since homes are considered a ‘barren asset,’ both divorcing parties need to think about whether or not the home is worth keeping. The condition of the housing market influences that decision, since it’s volatile to a point that home values may depreciate by as much as 30 percent in some markets. While housing values don’t deprecate that much nowadays, even the smallest loss in value can make the house look ‘worthless’ in the eyes of both parties.
Both parties might not even have enough finances to keep paying for the home, too. Even the job market in many states makes it difficult for people to make a living, since a lot of people struggle to find and keep work. Both parties, particularly if they’re having difficulties in that regard, likely won’t be able to maintain their mortgage if they have those particular troubles.
That alone is a big reason why some couples don’t immediately divorce: the financial burdens. Those parties choose to seek mediation and live together until they’re financially stable enough to divorce. That usually includes keeping the martial home together.
When you think about it, it’s often financial reasons keeping the marital home in the sights of both divorcing parties. Both parties have the responsibility to talk to financial and/or legal aid about the best