The marriage house and other marital real estate are often the main assets for those going through a Georgia divorce. The question of whether or not the marital house or real estate should be kept and by whom is often a key point of contention in divorce proceedings. In the end, the circumstances of each case will determine what happens to the family home. It is probable that the court will accept such a settlement agreement if the parties can agree on what will happen to the marital house and other real property. If the couple is unable to reach an agreement, the matter will be decided by the court. There are various choices to consider when selecting how to manage real property whether you are contemplating divorce or are presently going through one.
It is very uncommon for one spouse to have purchased the marital house or other real estate before the marriage, or to have spent a large percentage of their separate property to purchase the real estate or make the first down payment. This information may have an influence on how the marital house is split between the parties, particularly if the parties used marital finances to enhance the property or lower the mortgage debt. When this situation develops, determining which piece of the house should be considered marital property and which portion should be considered distinct property of the spouse who made the original investment may be challenging. As a result, what is known as a source of funds analysis becomes essential. The Georgia Supreme Court established this methodology or formula in the case of Thomas v. Thomas, 259 Ga. 73 (1989), and it is commonly referred to as the Thomas analysis. The goal of this study is to figure out what proportion of an asset or debt (usually marital residences or other forms of real estate) belongs to one spouse and what percentage belongs to the other. Although your divorce lawyer will be able to help you better understand this procedure, below is a simplified version of the source of money analysis for calculating each party’s financial stake in the marital home.
● Analyze the funding sources
● Calculate how much money the spouse put into the house.
● Calculate how much the wife contributed to the house.
● Determine the portion of the contribution that was made by the couple.
● Determine how much of the couple’s money was utilized to pay down the mortgage principal.
● Determine the house’s worth. For instance, look for the home’s purchase price or get a recent evaluation.
● Calculate the total amount of money invested in the asset (1+2 3).
● Calculate your husband’s share of the home’s appreciation (1 divided by 6).
● Calculate the wife’s share of the home’s value (2 divided by 6).
● Determine the value of the home’s marital part (3 4 divided by 6).
The numbers 7, 8, and 9 should add up to 100% of the home’s appraised value. The next stage is to decide how the house will be split after determining which component of the home is separate property and which portion of the home may be classed as marital property.
The house is being sold.
Selling the marital home is the first choice. This is the most common choice for spouses who do not want to keep the marital home (or cannot afford the house individually). A couple that selects this option may pick how and when the sale will take place, as well as the amount they want to sell their home for. The earnings from the sale of the house might be split between the couples or handed to one spouse as a property settlement or spousal maintenance. Keep in mind that the money from the sale of the marital property is usually split after the mortgage is paid off, as well as the expenses of the sale, such as real estate broker commissions, transfer tax, and attorney’s fees. The choice of whether or not to sell your home after a divorce will almost certainly be painful, but it is one that must be made without emotion. It’s advisable to concentrate just on whether or not keeping the house is fiscally advantageous. One financial difficulty that may be avoided is keeping a house that you can no longer afford or maintain after your divorce.
One spouse is responsible for the house for a certain length of time.
Another alternative is to give one spouse exclusive possession of the marital residence for a certain amount of time. Couples who still have little children and want their children to grow up in the marital house usually choose this approach.
When one spouse agrees to stay in the marital home after the divorce, plans must be established for the house’s expenditures to be paid. It is usual for couples to agree that the person who lives in the home is responsible for paying the mortgage, property taxes, utilities, and basic maintenance. Alternatively, the couples might agree to split these payments, or the spouse who does not own the house could bear responsibility for them as a kind of child support or alimony. Again, your settlement agreement may be tailored to your family’s specific requirements. For additional information, contact one of our divorce lawyers.
One spouse is responsible for maintaining the house permanently.
Another possibility is for one spouse to maintain the marital house while the other spouse buys out the other’s part. When a court order or a marital settlement agreement transfers ownership of the marital house to one spouse and makes that spouse accountable for future mortgage payments, it does not follow that the spouse who moves out is no longer liable for the mortgage. If both spouses are named as borrowers on the mortgage documentation, the spouse who no longer owns the house may still be held accountable for payments if the other spouse defaults. The ideal practice in this circumstance is for the spouse who will keep the house to refinance the mortgage into his or her name alone. Only the spouse who owns the house will be legally responsible for the mortgage payment.
