In Indiana, the division of a marital home during a divorce can take various paths, each with unique implications and considerations. This state uses equitable distribution, which seeks a fair, but not necessarily equal, division of assets.
Understanding the different possibilities for the marital home during property division is crucial for individuals navigating a divorce.
Selling the home and dividing the proceeds
One common approach is selling the marital home and dividing the proceeds between both parties. This option is often chosen for its simplicity and fairness, especially when neither party can afford the house independently.
The home sale converts a significant asset into liquid funds, which can be equitably divided. This allows both parties to invest in new properties or use the funds for other financial needs.
One party retains the home
Another possibility is for one party to retain the home. This may occur if one party has a stronger emotional attachment, if children are involved and maintaining stability is a priority or if one party can financially manage the home independently.
The party keeping the home usually buys out the other’s share. This process often involves refinancing the mortgage to remove the other party’s name and responsibility from the loan.
Co-ownership of the home post-divorce
In some cases, divorced couples may choose to continue co-owning the home. This arrangement might be temporary to allow children to finish schooling in a familiar environment or until the housing market improves for selling.
Co-ownership requires a high level of communication and cooperation. Both parties remain responsible for mortgage payments, maintenance, taxes and other associated costs.
The marital home is often the most significant asset in a divorce. Understanding the options and determining how to handle this matter is critical to property division.
