When spouses decide to end their relation and seek a divorce, the biggest issue between spouses can sometimes be the division of assets, because when you go through a divorce, securing your financial future becomes a spouse’s top priority. An asset list will typically contain a number of different inventories, yet the most important one is almost always the family home. It’s the division of this asset that will witness the most resistance from both the spouses because one of the spouses may not want to sell it.
The importance of a family home cannot be understated. Financially, the property where you live is probably the largest asset. Emotionally, it is the place you started a family, the place you lived a significant portion of your life and so you will have a number of memories attached to it.
Dividing the Home
There are a number of different ways you can treat a house. If, however, neither of the spouses is willing to give up their interest in their family home, the courts will have to decide how to divide equity of the home between the two warring parties.
For the family law courts to be able to divide the equity of the home between the two parties, it is important that there is an accurate figure of equity that has been determined. Equity of a home is found out by the formula of subtracting the debt of the home from the market value of the house and the costs that it would take to divest the home.
The value of the property will often also be disputed upon by both parties. In such a case, the parties need to agree to a joint professional real estate appraisal or get their own independent appraisal to determine what the market value of the property and thereby its equity is. At any point during this time, the parties can agree on the market value.
Once the amount of equity in a family home that has a mortgage loan has been determined, the equity for each spouse to receive can be determined. This process can be concluded before the actual time if the spouses agree to division of equity between themselves.
Gerald A. Maggio is an experienced Orange County divorce and family law lawyer and family law attorney located in Irvine, California, serving the Orange County and Riverside areas. Mr. Maggio assists clients with legal issues including divorce, legal separation, divorce mediation, child custody, prenuptial agreements, stepparent adoptions, and other family law issues. Mr. Maggio has practiced law in California since 1999, and founded The Maggio Law Firm in 2005, focusing exclusively on divorce and family law matters.