When it comes to dividing assets and liabilities between two spouses during their divorce process,Georgia is an equitable distribution state. This means the division is one that the family law court considers is fair, not necessarily equal.This includes the marital home which is often the most financially valuable asset the couple owns together. When both parties have an emotional and sentimental attitude toward the home and children are involved who still live there and do not want to move, what to do with the marital home may be complicated.
Although there are several possible solutions, they all begin with having the property appraised to determine its fair market value. Then, any debts owed relevant to the property, like the mortgage and taxes, are deducted to determine the equity, which is the amount that needs to be divided.
Selling the home to a third party
The easiest solution seems to be to sell the home to a third party. When the sale goes through, the amount will be distributed by the court under the principles of equitable distribution. One party may receive more of the home equity than the other after the court considers all relevant factors to a fair distribution.
One party buys out the equity interest in the property from the other
Either party can buy out the interest of the other based on the amount of equity in the home. The home will likely need to be refinanced which provides for the deed to the home to be placed in the name of the buying spouse, removes the selling spouse from liability and debt that comes with being a joint owner and provides the money to the other spouse for the buy-out.
Delayed distribution
When there are minor children and the court finds it would be in their best interest to continue living in the home, Georgia courts may order a delayed distribution of the equity of the home. The court may establish a timeline for the property to be sold. For example, the court may order the house to be sold when the youngest child graduates from high school or reaches the age of 18.
The court will consider all relevant factors and determine whether or not the party that will not be living in the marital home will have an obligation to pay for any of the expenses for the property, such as the mortgage, maintenance or taxes.