When a couple decides to end their marriage, one of the most significant assets that they need to divide is their marital home. The question of who gets the home depends on several factors, such as the value of the property, the financial situation of each spouse, and the reasons for divorce.
In Pennsylvania, marital property is defined as any property acquired during the marriage, regardless of whose name is on the title. This includes the marital home, which is often the most significant asset of the couple. Here’s what you need to know about what happens to the marital home in a Pennsylvania divorce.
Equitable Distribution
Pennsylvania is an equitable distribution state, which means that a judge will divide marital property fairly but not necessarily equally between the spouses. Before making any decision, the judge will consider various factors, including the income and earning potential of each spouse, the duration of the marriage, the standard of living established during the marriage, and the age, health, and needs of each spouse.
Separation Agreement
Spouses who can agree about the distribution of their marital property, including their home, can create a separation agreement. This document outlines how the couple plans to divide their assets, including the marital home. If both spouses agree to sell the home, they must decide how to distribute the proceeds and who will be responsible for any outstanding mortgage.
If one spouse wants to keep the home, they need to buy out the other spouse’s equity in the property. This depends on the value of the home and the amount of outstanding mortgage. The spouse who keeps the home needs to refinance the mortgage in their name only and provide the other spouse with the agreed-upon amount. It’s essential to get a home appraisal to determine the fair market value of the property.
Court Decision
If the spouses cannot agree on the division of their marital property, including their home, a judge will decide for them. The judge will consider similar factors to those in equitable distribution, such as the length of the marriage, each spouse’s financial needs, and any other relevant circumstances.
If one spouse wants to keep the home, they need to present a compelling argument to the judge. They must show that they can afford the mortgage payments, property taxes, insurance, and other housing expenses on their income alone. If the judge grants them the home, they need to refinance the mortgage in their name only, assuming they are listed on it, and provide the other spouse with the agreed-upon amount.
Conclusion
In conclusion, divorcing couples in Pennsylvania need to determine what happens to their marital home during the divorce process. Whether through a separation agreement or a court decision, the couple needs to decide whether to sell the home, buy out the other spouse’s equity, or transfer the ownership to a single party. Therefore, it’s crucial to work with an experienced divorce lawyer who can help navigate these issues and reach a fair and equitable outcome for all parties involved.