A divorce can result in many losses for the couple, including their jointly owned home. Splitting marital property is often one of the most complicated parts of the divorce, so it’s important for New Jersey residents to understand property division laws. An example of this is the principle of equitable division of the marital assets. This assures that both parties are awarded a portion of the value of the home they own together unless otherwise agreed to.
However, both parties need to be aware that the valuation date is on the one recorded in the divorce records. In general, if one party lives outside the home during the proceedings, the costs of running the house will still be split evenly, but it the property gains value after the valuation date, it is likely the party who continues to stay in the house will get the extra sale money if the house is sold.
There are important considerations about keeping the house as well. If neither party wishes to keep the house, it can be fairly straightforward. They agree on a price, sell the house and split the profits. Things tend to get more complicated when one party wants to keep the house and the other just wants the money. If one party can afford the expense of the house and buy out the other spouse, again it’s the process of selling and sharing the profits. However, a great deal of difficulty can arise when the parties cannot agree on the value of the property or if it is not possible to sell it for the agreed price.
Dividing marital assets is probably one of the most vexing parts of a divorce. There is often a great deal of emotion and money tied up in the marital house and disagreements over whether or not it needs to be sold. Attorneys may be able to help the parties negotiate an agreement that is reasonable.
Source: Huffington Post, “What to Do With Your House in a Divorce Case [Infographic]“, Christian Denmon, Denmon & Denmon Trial Attorneys, December 09, 2013