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Who Gets to Keep the House?

Posted on March 24, 2015 at 6:26 PM
People frequently ask me who gets to keep the house in a divorce case. Theoretically the marital home is community property and is legally shared by both parties. However in real life it really boils down to who can realistically afford to pay for the home. In my experience, most of the time neither party can afford to keep the house.

One of the major causes of divorce in the United States is financial stress. And New Mexico is not immune. No big revelations but stop and think if money is what is underlying much of your marital discord, how realistic is it for you to keep the home? How much equity is in the home? Are you able to refinance without your spouse? Can you maintain paying the current monthly mortgage? What if the monthly payment is increased?

If it turns out that neither you nor your soon-to-be ex can afford the home, then what? If you are both able to agree to the value of the home and work together to sell it, all the better! You will reduce your expenses and likely the overall costs of the divorce. If not, then things aren't going to go so well.

When couples cannot agree about the value of the home the Court must decide. Things get even more complicated when parties dispute whether the residence is community property or whether a percentage of its overall value is separate property. This happens when your down payment is perhaps a gift from Mom or from an inheritance. Other factors which come into play are improvements and how they were paid for and of course the market.

The best thing is to try and work much of these details out with your spouse prior to actual litigation. If you have additional questions, please contact me.

 

Categories: divorce, family law, property division

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