People in Georgia who decide to divorce may face difficult questions about how to handle the marital home as part of the settlement. Unlike traditional financial assets, the home cannot simply be split like a bank account or retirement fund. However, unlike other sentimental items, the home has a great deal of material value and is often the largest single asset held by the divorcing couple. Due to the difficulties involved, many couples address this issue by selling the home as part of the divorce. The sale of the home allows the proceeds to be used to pay off a mortgage balance and distribute the remaining funds as part of the overall settlement.
However, in many cases, one spouse wants to remain in the family home after the divorce is concluded. This is especially common if there are children involved and the remaining spouse is the primary caregiver or custodial parent. While this can be a positive solution for some couples, it requires thinking about the financial consequences of keeping the home. In most cases, the remaining spouse will need to buy out the interest of the other spouse in the home, often requiring a significant sum.
In addition, the mortgage will, in most cases, need to be refinanced into the name of the remaining spouse only. He or she will need to exhibit an ability to pay the bills each month. Otherwise, the other spouse could be held responsible for defaults and other liabilities. At the same time that the mortgage is refinanced, the deed should be retitled to reflect the remaining spouse only.
There are a number of financial challenges that divorcing spouses may face as they consider the future. A family law attorney may help people protect their interests and negotiate a fair settlement on property division and other divorce matters.