One of the biggest issues that comes up during any divorce proceedings is the division of property. Every item you own has to be divided up between you and your spouse. If you're like many couples, the most valuable property you own is in the form of real estate - houses, condos, vacation homes, even businesses. You're probably wondering, "what happens to these investments?"
Before you make any decisions involving the division of real estate property, you need to carefully examine your financial situation both prior to the divorce, and after the divorce. Can you afford the property now? Will you be able to afford the property later? Is it practical for you to continue paying the expenses associated with owning a piece of real estate?
In addition to pragmatically evaluating your financial situation, you need to evaluate your emotional ties to the property. While it may be financially beneficial for you to retain possession of a particular piece of property, the painful memories associated with it may be too strong. It's impractical to think that the emotions associated with marital property don't exist.
The way you decide to divide any real estate property following your divorce is subject to the divorce laws in your particular state. Some states, such as California, believe that property division should be equal as well as equitable, meaning that the overall value of the property given to both parties should be roughly the same. Other states take into account only equitability, meaning that the general overall value of the portions should be comparable.
In general, there are three things that you will be determined about the house during a divorce:
· Which spouse will receive the house following the divorce.
· What that spouse gives up in order for the property division to be equitable.
· Whether or not the house will be sold to a third party.
If you plan on keeping the house following the divorce, you will have to buy out the other spouse's share in the house. This usually involves taking out a new mortgage on the house. Other reality follows similar rules. If you cannot afford to take out a new mortgage on the property, it will most likely be sold to a third party.
If you or someone you love is going through a divorce and has questions about how this will affect the real estate, visit the San Jose divorce attorneys of the Law Office of Daniel Jensen today.