REAL ESTATE ISSUES IN DIVORCE

            When a couple divorces, frequently the biggest issue is how to handle the real estate.  Most couples own a home which in the divorce court is referred to as the marital home.  In many cases, the divorcing parties also own income property.   How the real estate is handled depends to a large extent on whether or not the real property has equity.  The options can be summarized as follows:  

MARITAL HOME WITH EQUITY

1.     Parties can sell the property and split the equity;

a)     Either the parties agree or the Court orders it;

2.     One party can re-finance and buy-out the other party;

b)     Either the parties agree or the Court orders it

3.     The parties can agree to sell when the children graduate high school;

c)     Generally, the Court will only order this if the children will be graduating in the next few years;

4.     The parties can agree to sell when the children graduate college

d)     Generally, the Court will only order this if the children will be graduating in the next few years.

5.     The parties or the Court can allocate the marital home to one party.

MARITAL HOME WITH NO EQUITY

1.     One party accepts ownership and refinances to remove the other from the deed;

2.     Parties can agree to sell;

3.     The Parties or one party can agree to retain the property and sell at a later time;

MARITAL HOME UNDER WATER

1.     Parties agree to a short sale;

a)     Court may order the sale so property is not foreclosed;

2.     One or both parties agree to pay arrears;

3.     Court can order one or both parties to pay arrears;

4.     One or both parties can apply for a loan modification;

5.     Parties cannot agree and property is foreclosed;

a)     This is not a good option.

INCOME PROPERTY

1.     All the sale, re-finance and buy-out, retention and/or allocation issues are available depending on equity;

2.     Income can be allocated to one party or split;

3.     Expenses can be allocated to one party or split;

4.     Income can be held in escrow by an attorney.

If you have any questions, call or e-mail Caren Z. Schindel at 508-651-1000 ext. 214 or Cschindel@mrmbw.com