Divorce is a challenging process, often laden with emotional and financial complexities. One of the most pressing concerns for divorcing couples is determining who gets to keep the marital home. This decision is far from straightforward, influenced by a myriad of factors, including financial considerations, the best interests of any children involved, and existing spousal agreements.
Keep reading to learn how divorcing couples in New York often handle this issue.
Understanding Marital vs. Separate Property in New York
Before you can decide how to handle the division of the family home, determining whether a home is considered marital or separate property is the first step. Generally, any property acquired during the marriage is deemed marital property, including the home.
However, there are exceptions. For instance, a house purchased before the marriage or inherited by one spouse may be classified as separate property. Yet, even in these cases, if marital funds were used to pay the mortgage or improve the home, it might still be treated as marital property.
Factors Influencing Who Gets the Marital Home
New York follows the principle of equitable distribution, meaning that jointly held property is divided fairly, though not necessarily equally. Many couples can negotiate a property division settlement outside of court by working with their attorneys or a mediator. However, for couples in high-conflict divorces, their property division settlement may be decided by the court.
Several factors play a role in this determination:
- Financial Contributions: The court considers both spouses' financial contributions to the home, such as mortgage payments and maintenance costs.
- Non-Financial Contributions: Contributions aren't solely monetary. Non-financial contributions, like one spouse's role as a stay-at-home parent, are also significant.
- Length of the Marriage: The length of the marriage can impact how assets are divided.
- Best Interests of the Children: The court always prioritizes the children's best interests. Awarding the home to the custodial parent might provide the stability and continuity necessary for the children's well-being.
If spouses can agree on who keeps the home through negotiation or mediation, the court typically honors these agreements, provided they are fair and equitable.
Financial Considerations for Keeping the Marital Home
While we may have an emotional attachment to our homes, anyone considering taking on a property alone, post-divorce should consider the long-term financial impacts of this decision. It's essential to realistically assess whether you can comfortably afford the home on your own. This includes mortgage payments, property taxes, and ongoing maintenance costs.
Additionally, if you wish to retain the home, be aware you may need to refinance the mortgage to remove the other spouse's name. This requires sufficient income and creditworthiness.
Buying Out Your Spouse
For those wishing to keep their family home, you might have the option to buy out your spouse's share of the house. This can be done through a lump-sum payment or by offsetting the value with other marital assets.
If neither spouse can afford to keep the property, selling the home and dividing the proceeds may be the most practical solution.
What to Do if You Want to Keep the Marital Home
If keeping the marital home is your goal, take proactive measures from the start. Hire an experienced divorce attorney (like ours at Law Office of Tzvi Y. Hagler, P.C.) to advocate for your interests. Gather financial documentation to demonstrate your ability to afford the home. This includes preparing for potential refinancing.
Remember, early discussions with your attorney about your goals can lead to a more strategic approach. If you are considering divorce and want to retain key assets like a home, contact our firm online to schedule a consultation. We offer personalized representation.
