A person's home typically acts as a place of security and comfort. Because many memories are often made in the family house, a strong attachment can commonly form to this piece of property. However, when a couple decides to divorce, the home could become a point of contention when it comes to asset division.
Typically, either of two options works best depending on the specific circumstances for New York residents. When dividing property, some individuals may choose to simply sell the home and deal with the resulting proceeds or losses. Proceeds could come with certain tax implications; therefore, individuals may wish to consider how taxes could affect them financially and with other aspects of their property division. If the selling of the home resulted in losses and remaining mortgage balances, individuals would also need to determine their best options for handling the remaining payments.
The second option involves one spouse keeping the home and the other spouse relinquishing ownership. In these cases, the party keeping the home may need to refinance in order to have the mortgage in his or her name alone. There is also the possibility that an individual could buy out the other party if the home has already been paid off.
Whichever option may seem to suit the circumstances, New York residents will undoubtedly want to ensure that they understand the implications of their choices. By gaining more information on asset division and handling valuable property such as a home, parties may be better able to make decisions with which they feel comfortable. Gaining assistance from experienced attorneys may also help interested parties make sure they are utilizing the best strategies.
Source: marketwatch.com, "What to do about your home in a divorce", Shawn Leamon, March 16, 2017