Deciding what happens to the house in a Maryland divorce is a common dilemma among divorcing couples. Your home can often be the most valuable thing you own. While a marital home can hold significant monetary value, it can hold a significant amount of emotional value as well, making it a difficult topic to discuss.
Marital property, in Maryland, includes real property (such as a home or land). When deciding on what happens to the house in a Maryland divorce, keep in mind the following options:
1.) Selling the Home – you can list the home for sale, pay off the mortgage and any home equity loan(s), and then divide whatever is left as part of the equitable division of marital property.
2.) Transferring the Title or Buy-out – you can keep the house and buy-out your spouse, if you agree to refinance the jointly held mortgage to remove the other spouse’s name and pay off the mortgage. The party receiving the home may also refinance the property at an amount high enough to pay the other spouse their equitable portion of the home. You may also use other assets, such as brokerage accounts or retirement assets, as an off-set for their share of the equity in the home.
3.) Use and Possession – If you have minor children living in the marital home, the custodial parent may be granted use and possession of the family home for up to three years after the divorce is final. At the end of the use and possession period, the ownership will revert to whoever’s name is on the title or be sold. You and your spouse can decide in mediation or through a collaborative divorce, that one party may have use and possession for a shorter or longer time period than three years. Many families choose this option in order to allow their children to remain in their current school districts.
When dividing assets, such as your Marital Home in Maryland, your focus should be on what makes the most financial sense for the situation you are in. Looking through the scope with an emotional mindset can cause issues down the road and get in the way of protecting your interests.
Jacobson Family Law is committed to Keeping the Drama Out of your Divorce by avoiding lengthy, drawn out court proceedings. If you have questions about what happens to the house in a Maryland divorce or questions about the options for property division in your Maryland collaborative divorce or mediation, contact us today at 443-741-1147 or Schedule a Consultation.