In equitable distribution states like Tennessee, property will typically not be divided evenly between you and your spouse in the divorce. Instead, the court will consider several factors and determine the best way to divide your property fairly and equitably.
Many married couples consider their home to be their most valuable asset. If you are getting a divorce, it may be hard for you and your spouse to agree on what to do with the house. In such cases, the courts may step in and make the decision for you.
The court will first determine whether your house qualifies as marital property. If your house was purchased or acquired during the marriage, it will likely be considered marital property.
However, even if the home was purchased prior to the marriage by one of the spouses, it is unlikely to be considered separate property if the non-purchasing spouse contributed to the marriage.
Contributions may include making mortgage payments, raising the couple’s children, or making improvements to the home.
If the house is considered marital property, there are a few options as to how to divide it between the spouses:
- Sell the house and divide the proceeds.
- One spouse buys the other out and keeps the house and refinances the home in their name only.
- One spouse keeps the house, but the other spouse will be given other funds and properties.
- Continue co-owning the home until you find a buyer or save enough money to buy your spouse out. Co-ownership may also be beneficial to couples with children who want to make sure the children’s living arrangements remain stable while they are in school.
Deciding who gets to keep the couple’s main residence is just one of many issues in a complex, high-asset divorce.
If you are considering keeping the house in your name only, make sure you can afford maintenance and upkeep and are willing to miss out on other properties and accounts.