Family homes can be sticking points in a divorce

| May 13, 2019 | divorce, Firm News

Real estate such as a marital home is generally among the most valuable assets a couple will buy during their time together. Therefore, it may be a source of frustration in a divorce. The first step in deciding what to do with a marital home in Kentucky or any other state is to get it appraised. This will help a person better understand how much equity it has. Equity is what is left over after accounting for a mortgage or other liens.

It may be possible for an individual to go through the cash-out refinance process to assume ownership of a home. This allows equity to be pulled out of a home and divided among the former spouses. However, this will require the person who is responsible for the new loan to borrow more money, and a cash-out refinance may come with a higher interest rate.

Those who wish to refinance a home loan are allowed to do so before the divorce becomes official. This assumes that whoever is keeping the home is qualified to borrow enough money to do so. In some cases, refinancing early makes it easier to resolve other issues related to a final divorce settlement. Ultimately, it may allow for a resolution to be reached in a timely manner and with less stress for all involved.

The end of a marriage may result in an individual taking sole possession of a marital home. However, a divorcing couple may also choose to sell a home or share it for a time after the relationship officially comes to an end. This may be ideal for those who have children with their former spouses. A family law attorney might be able to help a person decide which option may best suit his or her needs.