For most married couples, their house is by far their largest tangible asset, which is considered to be a great investment from a financial standpoint. However, this can be a game changer for those same couples during divorce. Deciding how to divide property is a very important decision that needs to be well thought out. Without the right help and information, this situation can be both very stressful and, in certain cases, even financially damaging.
During times of economic flux, it may be difficult to properly assess the value of your house.This can be made even harder by the family’s emotional attachment to the home. So it’s very important to consider all eventualities before making any choices, which is where your Divorce Attorney comes in.
Should you keep your home home or sell it? Is it alright to let your spouse stay in the home while you move out and rent someplace else? Can you rent the house out to cover the mortgage? These are all common questions about property division that come up during divorce proceedings. The answers are going to depend on many factors, and you will need to sit down with your attorney to develop a strategy that works for you.
While tax laws don’t differentiate between a home owned by one taxpayer or two, the IRS does care which joint owner is responsible for paying the taxes and receiving the annual deductions. This information should be taken into account when considering who, if anyone, should continue to live in the home after the divorce. Also, the annual cost of maintenance needs to be taken into consideration.
People often forget to plan for the costs involved in home maintenance and repair, when making plans for how to deal with their home during a divorce.
There are many cases where neither party is able to afford the home after a divorce – the monthly bills and mortgage payment can present too large a financial burden for either to handle alone. In this case, the issue of whether to sell or rent comes into play. This is just one of many factors to consider in determining how you want this asset dealt with or divided.
As experienced divorce attorneys, we discuss these concerns with clients daily. But being experienced in family law isn’t the same thing as being experienced in property assessment and budgeting concerns. So before making any final decisions about property division in Michigan, we recommend that our clients consult with a tax adviser and a real estate professional in addition to your divorce attorney.
Divorce is invariably a stressful time for everyone involved, but getting the right help can make a big difference in getting you through a hard set of circumstances without lasting damage to your future. If you have questions or concerns about how divorce will impact your future, or need help moving forward with asset division during your divorce, come and talk to one of our skilled divorce attorneys. We are here to help you.