When it comes to dividing the marital home in a divorce, there are a few common scenarios for Maryland couples.
In many cases, one spouse keeps the home and pays the other spouse their fair share of equity. Sometimes, couples co-own the home for various reasons, such as waiting for the property value to increase or maintaining stability for the children.
However, when neither spouse can afford the home on their own, there is one common option: Selling the home and dividing the proceeds. If you are considering this path, here are some important things you need to know.
Maryland spouses receive an equitable share of marital assets
Maryland is an equitable distribution state. You and your spouse will receive an equitable or fair share of marital property. However, “fair” or “equitable” does not necessarily mean an equal split.
The marital home, which is often a couple’s most valuable asset, will be subject to careful consideration within the broader context of the couple’s financial situation. Courts typically consider several factors when dividing property, such as:
- The length of the marriage
- Each spouse’s contributions to the marriage, financial or otherwise
- The income and earning potential of each spouse
- The standard of living established during the marriage
The goal is to reach a solution that balances the interests of both spouses. That said, the court may decide to order the sale of the property to achieve a fair division.
The benefits of selling the marital home
Selling the marital home can offer mental and emotional benefits. However, most of the focus is on the financial advantages. These might include:
- Financial clarity: Converting the property into liquid cash helps simplify asset division and makes it easier to distribute equity fairly.
- Debt reduction: Spouses can use the proceeds to pay off the mortgage and other shared debts.
- Flexibility for relocation: Selling the home allows both parties to choose new living arrangements that suit their individual needs.
Remember, while these benefits can be significant, you must consider all the pros and cons when deciding to sell.
The cons of selling the marital home
On the flip side, selling the marital home can be emotionally challenging, especially if you have children. The process can also be stressful and time-consuming, potentially prolonging divorce proceedings.
Furthermore, there might be financial disadvantages if the market conditions are unfavorable.
With these benefits and drawbacks in mind, it’s crucial to make your choice carefully. Consider talking to a divorce attorney who can help you explore your options, understand the implications of each decision and protect your rights during this difficult journey.