While divorce can be a heartbreaking process, you can often get a fair share of wealth out of it. Often times, one party will end up getting the marital residence in which the ownership was shared, but as the marriage is dissolved the property must be divided. This can be one of the most confusing and complicated processes, as it will require a thorough examination of the financing of the mortgage, the need to have the property or even the suitability of the location for raising a child.
However, some people often run into the dilemma of not knowing what to do with the property once they get it. Some opt to sell the property while others would rather keep it. This will depend entirely on your needs, because if you have the means to live in the property or rent it out, then it will be a valuable asset for you. On the other hand, if you don’t have the money to pay for the upkeep and other luxuries, then it may be in your best interest to sell the property.
Regardless of what you choose to do, it’s still important that you understand how the selling process works so that you have a better idea of what to expect. Here’s more information on that process.
The process of selling a marital residence after the divorce
The first thing the parties will need to do is to agree on the value of the property, which will then be subtracted from the remaining loan balances. This number will then be the established equity that the parties will get when the property is sold. Once the property is sold, the sum remaining after the owed mortgage is subtracted will then be distributed between both parties according to the agreed upon terms.
Most of the time, the shared amount of equity is divided equally between the two parties, but this isn’t always the case. If the parties agree to a different rate, then they will get the money according to the ratio they decided on. If the loan sum is larger than the value of the property, then both parties will have to share the responsibility of settling the remaining debt.
What if one party decides to stay?
If one party wishes to stay in the property, they will have to settle things with the other party first. This is often done through the mediation process, as personal negotiation rarely ever works for a divorcing couple. If they fail to come to an agreement, they will have to involve an attorney and maybe even bring their case in front of a court, which will launch another asset distribution hearing. The party that opts to stay will take on all the mortgage and debt that comes with the property, including taxes, upkeep, and maintenance.
If you’re looking to sell your marital residence, you will need a professional lawyer on your side. Buckley Family Law is your best option, as our years of experience can surely help you with a case like this and so much more. Get in touch with us today to see how we can help.
If you’re looking for a divorce attorney in Genesee County, we are here to help. Get in touch today for a free consultation.