State law typically governs property ownership and asset division issues in cases of divorces. A state will either follow community or equitable distribution property laws in most instances.
In a community property state, couples split property in half. This means that both parties are entitled to 50% of the equity within the marital home. For an equitable distribution state, a judge will mete out your property. However, this does not necessarily mean equally or evenly.
The date you acquired your house is another critical piece of information when it comes to how to keep the house in a divorce. In community and equitable distribution jurisdictions, a judge cannot award your separate property to your spouse. In most cases, a good divorce lawyer will tell you that the property is usually deemed separate if it was acquired as a gift, through inheritance, or before the marriage. Therefore, spouses tend to keep their separate property in a divorce.
Virginia, An Equitable Distribution State
According to Virginia divorce statutes, courts must adhere to the equitable distribution model when dividing up marital property. Nonetheless, couples have the opportunity to agree on what is a fair division of assets throughout the divorce process. If they can’t, then a judge will rule on the matter after a hearing is conducted.
Who Gets To Keep The House In A Divorce?
A house is considered one of the biggest purchases a couple can make during their marriage. In Virginia, couples going through a divorce have few options for who gets to keep the home based on various circumstances. For starters, both parties can decide to sell the property and split the proceeds, or one spouse may buy the other’s interest in the home. Another alternative will be to agree if both their names happen to be attached to the mortgage and deed. In both these scenarios, the split comes through a refinance. The decision of how to go about these two options largely depends on who wants to keep the home. If neither party wants the home, then the property can be easily sold.
Treatment Of The House
Since couples primarily have two options, with the third only being applicable if there are dual signatures, the outcomes of who gets to keep the house may vary. However, according to Virginia laws, property and marital law are connected. This is why both parties have access to any proceeds obtained from the sale of the house. They also have rights and vested interests in the property regardless of whether there is one or dual signatures on the deed. Even though this may not prevent a home sale, both parties are still entitled to part or half of the revenue generated from the sale.
Keeping The House
Since the options mentioned above are quite limited in scope, couples in a divorce can decide to take time to determine the best course of action before things are final. If both their names are on the deed, it could result in a refinance situation. However, in most cases, one party can take hold of the property and sell its rights to the other spouse. If the proceeds from the sale of the house are not enough to cater to spousal support or alimony, the home will most likely be sold. This is why the house may be used as a bargaining chip for determining whether one spouse needs to provide alimony or spousal support in certain circumstances.
In cases where the house was acquired during the marriage but is titled in one spouse’s name, the courts may award the non-owning partner monetary compensation based on the equity in the home. This equity is usually arrived at by subtracting the mortgage balance(s) from the house’s fair market value. If the owning partner cannot pay this monetary stipend, then the property may have to be sold to generate the funds needed. However, the courts usually leave this decision up to the owner.
To Sum Up
When both parties want to keep the house in a divorce, sometimes it’s simply easier if they sell it. However, a person should only make that decision after seeking advice from a legal professional. It is the only way to ensure a mutually beneficial outcome for both parties.