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Buying out the family home during a divorce

| Oct 9, 2019 | Family Law |

Part of getting a divorce in Kentucky is determining the value of assets and then dividing these between each spouse. The marital home is typically one of the major assets that a couple owns. It is common for one individual to buy the other person’s share of the house in a divorce, especially in divorces that involve couples with children.

Couples will need to work with professionals when it comes to determining the value of their home. Each spouse usually chooses and then hires an appraiser. The appraisers will look at things like the condition of the home and any special amenities it includes in order to determine its fair market value. After getting these estimates, the couple will be able to determine how much the home is worth.

One major factor in determining how much each couple owns of the house is the mortgage. It is easy to calculate the equity of a home with a mortgage. The first step is to take how much the home is worth, perhaps $600,000. If the mortgage is worth $300,000, then each individual would have $150,000 in equity in the home.

The individual who keeps the home may be able to pay their soon-to-be ex-spouse in cash for the home. It is more common, though, for an individual to refinance the home. This means that a person may end up paying more than their current mortgage. This is because refinancing takes into consideration an individual’s current income, any existing debt and their credit score.

A person may have questions about how a divorce will impact their finances and children. Speaking with an attorney may allow an individual to learn about spousal support, contested divorce, child custody, child custody modifications and other things related to the divorce process. The attorney may also be able to help with things like drawing up divorce papers and other documents.