When it comes to dividing marital assets during a divorce, determining what to do with your house will probably be one of the most difficult decisions you will have to make. Florida is an equitable division state, meaning the court will divide marital assets in a manner it deems fair. Any marital property will be divided equally upon divorce.
As your house is not a liquid asset, it can be hard to figure out how to divide it if you even want to do so. Additionally, if you have children, you will need to decide what is in their best interests, which means you may need to keep the home until they are old enough to move into a new one. A marital home does provide a sense of security and familiarity for a child, after all.
Options for Splitting Up Equity
The first step to dividing equity in a house is to know your options. Here are some ways you could divide equity:
Sell the house
If it makes sense to you, your ex-spouse, and your children, you could put the house up for sale. Once the house is sold, you can divide the proceed between the two of you. You will need to pay off your mortgage and pay for a realtor, closing costs, moving costs, and any other additional expenses that may arise.
Until the house is sold, the spouse that lives in the home will be responsible for all the expenses associated with the home, including bills and general upkeep.
Keep the house for an exchange of assets
Another option that may suit you if you would like to keep the house yourself is to do so by giving your ex-spouse another asset. This asset’s worth should be equivalent to the amount that he/she would have received had the house been sold. You will need to hire a licensed appraiser to determine the actual worth of your home in this situation.
Sell the house to your spouse
You also have the option of selling the house to your spouse who will purchase your half from you.
Ways to Determine Your Home’s Equity
When it comes time to determine the value of your home you can either hire a real estate agent to do a valuation or a licensed appraiser to compete a thorough analysis. A real estate agent/broker will conduct a comparative market analysis of your home and can provide a broker price opinion or comparative market analysis. An appraiser will consider multiple factors when determining your home’s value, including current market trends, the square footage of your home, your home’s amenities, recent sales of any other properties that are similar nearby, and any other factors that could impact the value of your home.
Home equity is calculated in this manner: take any current liens on the property and subtract it from the property’s value.
Contact our office online or call us via (407) 753-4111 to discuss the details of your divorce case.