Indiana couples who go through divorce have to consider division of property. Often, there’s a question of what happens to the marital home.
What are the property division laws for divorce?
Indiana is an equitable distribution state when it comes to dividing property during a divorce. This means that all property is divided among the divorcing spouses. The former couple can make an agreement regarding how the property is divided if the divorce is amicable enough. If there is a dispute, however, the court can make a decision on how marital property is split between the two parties. This includes the marital home, which is often a source of contention during divorce.
What happens to the marital home after a divorce?
Divorcing couples have options regarding what to do with the marital home. One spouse can choose to continue living in the home, but it’s necessary to refinance the mortgage so that it’s only in that person’s name. The mortgage lender would have to remove the other spouse’s name from the mortgage, which benefits both spouses in the long run.
One spouse can pay off the difference on the mortgage if the other wants to keep the home or rent it out. In this situation, one party can buy out the other’s share of the home. However, the spouse who wants to keep the home will need to have enough money to afford a new mortgage. This option is not for everyone.
Selling the home is another option. If this is what the divorcing spouses decide to do, they would split the proceeds from the sale of the home. This might also happen if one spouse is unable to refinance the mortgage in their own name within a timely manner.
It’s important to know the equity of the home to get the most value when choosing to sell it. Having a professional appraisal can help to evaluate the true value. However, both parties have to agree on the appraisal value, or there might be issues when it comes time to sell the home.
