The marital home is often the largest asset to get divided in a divorce, and family law attorneys need to balance other assets to create an equitable settlement. This process is much simpler with the help of Divorce Financials divorce financial software, which handles the calculations so attorneys can create multiple scenarios to find the one that satisfies both parties. The couple’s house can be treated in three ways.
One spouse, usually the one with primary custody of the kids, keeps the house. In most cases the attorney will need to offset the house’s value with other assets to compensate the other spouse. This is easy to do in Divorce Financials as assets can be quickly assigned to one spouse or the other, or divided between the spouses at any percentage desired. The divorce legal software keeps track of the total value of the settlement to ensure that the settlement presented is equitable. Attorneys should be sure to require the title be change to be in the receiving spouse’s name only, and if possible refinance the mortgage in the recipient’s name only.
Depending on the market and the couple’s respective needs, this might be the easiest solution. The house is sold and the proceeds are divided between the two parties. This is a popular option in so-called gray divorce, the divorce of couples over the age of 50. Once the kids have moved out, many older couples find they have nothing in common anymore and choose to go their separate ways. The residence may be too much house for a single, childless person so neither party wants it. It may also be necessary to sell the house if the person who wants it can qualify for a new mortgage, and the other spouse doesn’t want the credit risk if the mortgage becomes delinquent.
Sell House Later
If the couple has older children they might want to keep the house but sell it once the kids move out. Since the house will be sold in the near future, it may not be necessary to transfer the title. Both spouses could maintain ownership until the house can be sold. This can be a very good solution, especially if the divorce is amicable. Be sure to determine who will be responsible for mortgage payments, and for costs such as taxes and insurance.
Divorce Financials can handle any of these situations, or any other divorce and financial settlements you can come up with. This flexibility helps you find the best solution for your client.