Many Minnesotans know that dividing property during a divorce proceeding can be a highly emotional and complex task. Before deciding who gets what, there are a number of important questions that should be addressed. These include determining the exact value of the estate, the tax consequences associated with retaining the assets and the long-term effects of owning the property. Property division can get even more complicated when dealing with the family home, which may hold more than monetary value.
For many couples the family home is the largest asset that they own. How exactly an asset such as a home is dealt with in a divorce depends largely on the wishes of the couple. In some cases neither party wants the home, and the couple decides to sell the property and split the proceeds. In other cases, however, one spouse or another wants to retain the property, sometimes for the sake of the children or for sentimental reasons.
In cases where one spouse wants to keep the family home, there are a number of questions that need to be answered before making such a big decision. First and foremost, it is vital that the couple get a property valuation. This allows the couple to weigh the present value of the home against the existing debt. If the deficiency in what the house is worth versus what is owed on the house is too great it might not be worthwhile for either party to keep it.
Another important question concerns what it will cost to keep the property. This is not just a matter of the monthly mortgage payments, but also an honest accounting of the costs of home ownership, which includes repairs, maintenance, property taxes and bills. If, in the end, a person decides that it is worth keeping the family home, the next question is how to pay for it. Fortunately, there are many ways to structure property division that may benefit both parties equally.
Source: The Huffington Post, "Keeping The House After Divorce," Kathleen B. Connell, Feb. 20, 2013.
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