What Happens to the Marital Home When Neither Spouse Can Afford It After a Florida Divorce?
The marital residence is usually one of the largest assets a couple owns. During divorce, it needs to be divided in an equitable manner among the spouses. Even if one spouse wishes to keep the residence, mortgage payments, taxes, insurance, and maintenance can make it financially difficult. This is especially true after the two spouses divide their estate and take on their own expenses.
If neither spouse can afford the property on their own, there are alternatives.
Selling the marital home
Selling the house is often the most realistic option when both parties find it difficult to make payments after splitting their income. In Florida, the law uses equitable distribution to divide property between the couple. Marital property is usually split evenly, but there are statutory factors that may justify a different kind of property division.
If the home is sold, the mortgage and any other costs related to the property would be paid from the sale proceeds before the remaining funds are divided.
On the other hand, selling a house during a divorce can also create issues. Both individuals might not agree on how to list the home, what repairs are needed, which real estate agent to use, or whether to accept the offer.
What happens while the house is for sale?
The selling process can take months, raising the question of who should cover the mortgage, insurance, taxes, utilities, and maintenance until the sale closes.
These issues must be resolved during the divorce process, not through a handshake agreement or presumption. Florida law provides for credits and set-offs for the marital home. Without specific provisions in the divorce agreement, neither spouse can receive automatic reimbursement at closing.
This can matter if one spouse stays on the property and bears most or all of the costs.
Can one spouse keep the home?
One spouse can still retain ownership of the property if they can assume the home’s financial responsibilities. This can mean that the spouse refinances the mortgage and uses the other spouse’s share of the property or makes an equalization payment by sacrificing their right to other marital property.
But transferring title to the house alone will not automatically settle the mortgage issue. Consequently, you must carefully consider the property’s finances when negotiating the terms of the divorce.
In addition, the Florida court may determine if the retention of the marital property will serve the interest of the dependent child. Notably, the statute considers both the feasibility of keeping the property financially and whether it serves the child’s best interests.
Talk to a Tampa, FL, Divorce Lawyer Today
The Tampa, FL, family attorneys at Westchase Law, P.A., represent the interests of those looking to divorce in Florida. Call our office today to schedule an appointment, and we can begin discussing your goals right away.
