How to keep the family home after a divorce

On Behalf of | Aug 5, 2019 | Property & Debt Division

When an Oklahoma couples goes through the divorce process, they will need to determine how they will split up the family’s assets, including items they obtained during the marriage. One of these items may be the family home, which is often the largest asset that is obtained during the marriage. If there are kids involved, a parent may wish to keep the home, which may or may not be feasible based on the parent’s circumstances.

If one person wants to keep the family home, a home inspection must be completed to determine the value of the home. Then, it must be determined how much equity each person has in the home. To determine this, the remaining principal on the mortgage is subtracted from the value of the home. The equity is then divided between the former couple.

To own the family home outright, the person buying out the other party will then need to determine if they can afford to pay the equity amount the other party is eligible to receive and the remaining principal balance on the mortgage. This can be done by either refinancing the home, which also removes the other party from the mortgage. Alternatively, a home equity line of credit, or HELOC, can be opened.

When going through a divorce, the property & debt division is the process by which assets, retirement funds, real estate and any debt is divided between the former spouses. If one former spouse wishes to keep the family home, a family law attorney may negotiate with the other party by offering other assets in exchange for the home. For example, if the couple has financial assets, a former spouse might be able to keep the home in exchange for a fair or equal portion of his or her funds that he or she is eligible to receive in the divorce.