A marital residence is typically the biggest asset a married couple owns. Therefore, figuring out what to do with a home is often one of the most difficult parts of a divorce. Florida residents may wish to keep a home or buy a new one with funds from the equitable distribution of joint assets.
While painful to part with a beloved home, one must assess whether it makes financial sense to keep the martial property. Retaining a home after a divorce typically involves refinancing and buying out a spouse, and not everyone has the means to do these things. One likely needs steady employment and as well as cash for payments. Alimony and child support could also affect one’s financial status.
When keeping a home, one spouse must either refinance or secure a new mortgage. A mortgage could cause budget constraints in other areas as two people are no longer contributing to payments. If one spouse does not meet the income threshold for a mortgage, a co-signer might be necessary. When counting alimony as part of one’s total income, banks usually require at least three months of receipt first. However, it is more common for banks to request six months of receipt.
Since there can many options available for property division, divorcing spouses may need legal assistance. During the division process, it is important to determine what constitutes martial property. Inheritances and items acquired before a marriage are generally considered separate property. However, some exceptions could apply. For example, one partner might move into a spouse’s home after a marriage. While the property belongs to one party, the other person could be entitled to a share of the home’s value if joint assets were used to renovate the home.