https://www.schwab.com/learn/story/how-to-protect-assets-from-divorce


https://www.rowdywilliams.com/terre-haute-divorce-lawyer/terre-haute-property-division-lawyer/


https://www.rowdywilliams.com/terre-haute-divorce-lawyer/terre-haute-property-division-lawyer/


https://www.homelight.com/blog/how-to-keep-the-house-in-a-divorce/

How to Keep Your House in a Divorce
Divorce is never easy. It’s emotionally draining, legally complex, and
financially stressful. Amidst all the chaos, the house is one of the more
significant (and often contentious) assets.
Whether it’s because of sentimental value,
stability for children, or sheer practicality,
keeping the house is almost always a priority
for at least one person in the divorce.
But retaining ownership of the house isn’t as
simple as being the first to say, “I want it.”
There are legal, financial, and even emotional
considerations to work through.
Key Factors That Influence Who Keeps the House
Several factors determine whether you or your ex-spouse will be entitled
to keep the house. Understanding these can help you assess your
chances and make informed decisions during negotiations.
1. Financial Ability
Keeping the house means taking on significant financial responsibilities,
including mortgage payments, property taxes, maintenance, insurance,
etc. Courts will consider whether you can afford to maintain the home on
your income alone.
If your financial situation is uncertain or strained, it may be difficult to
argue that you should keep the property. Be prepared to provide a clear
picture of your income, expenses, and financial stability. You can’t hide
anything at this point. The more transparent and forthcoming you are
with your finances, the smoother the process will go.
2. Contributions to the Mortgage
If you’ve been the primary contributor to the mortgage and upkeep of
the home, that may weigh in your favor. (Courts tend to favor stability
and look at a past track record as an indicator of what will happen in the
future.) With this in mind, know that documenting your financial
contributions, such as mortgage payments, property improvements, and
household expenses, can strengthen your case.
With all of that being said, even if your spouse didn’t contribute
financially, their legal rights to the house may still apply, especially in
community property states where assets acquired during the marriage
are considered jointly owned.
3. Custody Arrangements
If you have children, custody arrangements can also play a very
important role in determining who keeps the house. Courts often
prioritize stability for the children, which could mean awarding the house
to the parent with primary custody.
If you’re looking to remain in the home for the sake of your kids,
emphasize how the continuity of living arrangements would benefit them
emotionally and practically. This will be your strongest point of leverage.
State Laws and Property Division
Property division laws vary by state, and understanding the rules in your
state is crucial. In community property states, marital assets are
generally divided 50/50. In equitable distribution states, courts divide
assets based on what is deemed fair, which isn’t always an equal split.
“Every state is different, but in Indiana, the law basically says that all
marital property is divided 50/50 – assuming there’s no valid prenuptial
agreement in place that says otherwise,” explains attorney Rowdy G.
Williams. “But there are ways around that, if you know how to approach
the negotiations.”
Not all states operate like Indiana, though. So if you’re in a different
state, you’ll want to get to know your state’s laws so you can get a feel
for how the rules apply in your situation.
Negotiating to Keep the House
If you’re serious about keeping the house, negotiation will be a key part
of the process. Here are a few strategies to consider:
● Offer a Buyout: If your ex-spouse has a legal claim to the house,
you may need to buy out their share. This means compensating
them for their portion of the home’s equity, which can be done
through cash, other assets, or a combination of both. For example,
you might offer your ex-spouse a larger share of retirement funds
or other marital assets in exchange for keeping the house.
● Refinancing the Mortgage: If you’re awarded the house, you’ll
likely need to refinance the mortgage in your name. This removes
your ex-spouse’s liability and ensures you have full ownership of
the property. Before negotiating to keep the house, speak with a
mortgage lender to understand your refinancing options and
determine whether you can qualify based on your income and
credit.
● Leverage Emotional Factors: While emotions shouldn’t dictate
legal decisions, they often play a role in negotiations. If your ex-
spouse has little emotional attachment to the house or views it as a
financial burden, they may be more willing to let it go in exchange
for other assets.
Financial Considerations of Keeping the House
Keeping the house can be a win, but you also have to consider the
financial implications carefully. Don’t go after the house just to prove a
point or “stick it” to your ex-spouse. You should only make this a priority
if it makes sense.
Here are some financial considerations to account for:
1. Assess Affordability
Can you realistically afford the house on your own? Beyond the
mortgage, think about maintenance, utilities, taxes, and unexpected
repairs. A home can quickly become a financial burden if you’re not
prepared for the costs.
2. Understand Equity
If you’re buying out your ex-spouse, you’ll need to determine the home’s
equity. Equity is calculated by subtracting the remaining mortgage
balance from the home’s current market value. Be prepared to negotiate
based on an accurate appraisal.
3. Long-Term Impact
Consider how keeping the house aligns with your long-term financial
goals. While it may feel like the right decision emotionally, selling the
house and splitting the proceeds could provide more flexibility for a fresh
start.
Moving Forward With a Divorce Attorney
Navigating the complexities of keeping a house during a divorce requires
expertise and strategy. And the good news is you don’t have to do it
alone.
A good divorce attorney can help you figure out the best possible way
forward and help you prioritize things like child custody or keeping a
house.