The process of divorce helps separate the finances and daily lives of the spouses involved. People who have previously shared their incomes, financial obligations and homes may find it quite difficult to arrange to separate their assets and financial obligations.
For many divorcing couples, the ownership of their home can be a major source of contention during a divorce. In some cases, both spouses want to stay at the home. Other times, the main issue is how they can fairly share the equity they have accrued through down payments, property improvements and monthly mortgage payments.
What typically happens with the primary residence of a couple divorcing in Pennsylvania?
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There are many different ways to address the marital home in a Pennsylvania divorce. Usually, both spouses have at least a partial interest in the property. Even if only one spouse has their name on the deed or the mortgage note, both have an interest in the home based on the marital contributions to its maintenance.
Spouses often need to determine what the property is worth early in the negotiation process. From there, they have to address the equity and the occupancy of the home. Factors including pre-existing attachments to the property and child custody arrangements may influence who stays in the home and who leaves.
Someone who moves out of the marital home during a divorce does not give up their interest in the property. Instead, they may receive a fair portion of the equity when the other spouse refinances. They could also request other assets with a comparable value as part of the property division settlement.
In some cases, the spouses or the courts determine that selling the home may be the most realistic solution. Selling the home allows the spouses to fairly divide the equity already accrued in the property. If spouses can’t settle matters related to their shared home with one another amicably, they may need to take the matter to family court.
Judges apply the Pennsylvania equitable distribution statute to the marital estate as a whole. They can recommend the sale of the property or award occupancy to one spouse. They usually have to factor in the value of the home’s equity when making other decisions about property division.
Understanding that each spouse has an interest in accrued home equity can help people set reasonable expectations for an upcoming divorce. People who know what happens with real estate can evaluate their situation to see what outcome might be best as they rebuild their lives.