It used to be that the single biggest asset the average married couple owned was their home. It used to be that most couples had some equity in their home, and therefore there would be something to share out at the time of the divorce. Neither of these things is necessarily true any more, as more and more homeowners owe more on their home than its market value. So what happens if that couple, underwater on their house, without other significant assets, wants to divorce?
It won’t work for one of the parties to refinance and buy the other out unless there is enough equity that a bank would be willing to take on the refinance. Sales can take a long time in this market. More and more couples are being forced to share the home after they have filed for divorce, or even after the divorce judgment.
How does that work, sharing the home? It will vary greatly based on the personalities of the two people involved, and on their animosity level. What’s needed is to take a business-like approach to the arrangement and to put emotion to the side.
Easier said than done, certainly. We find that many couples who have used mediation to settle the issues in their divorce will have an easier time coming up with a mutual set of ground-rules about how to share a home while ending a marriage. Even if the divorce itself is not mediated, meeting together with a mediator can give you a great neutral space and a facilitator to figure out how to share your space while you wait to sell.
C. Megan Oltman
Call us with more questions at 609-924-2900, or 732-438-3880, or visit our web site at www.strichlaw.com.
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