Who Keeps the House?

One of the most significant questions in any divorce is, “Who gets to keep the house?” For many couples, the family home is their most valuable asset, and it often holds sentimental value as well. Deciding who will stay in the house after a divorce can be one of the most emotionally and financially challenging aspects of the process. So how does the court decide who keeps the house, and what factors come into play?

Is the House a Marital Asset?

The first step in determining who gets the house is to understand whether the property is considered a marital asset. In Minnesota, the court divides assets into two categories: marital and non-marital property. Marital property includes any assets acquired during the marriage, regardless of whose name is on the title. If you and your spouse purchased the home together during the marriage, it is likely considered a marital asset and will be subject to division.

However, if one spouse owned the home prior to the marriage, or if it was inherited or gifted to one spouse, it may be considered non-marital property and not subject to division. In some cases, though, the line between marital and non-marital property can become blurred if both spouses contributed to mortgage payments or home improvements during the marriage.

Options for Dividing the Family Home

When it comes to dividing the family home, there are several options available, depending on your circumstances:

• One Spouse Keeps the Home: In many cases, one spouse may wish to remain in the home, especially if children are involved. The spouse who keeps the home may buy out the other spouse’s share of the equity in the property.
• Sell the Home and Split the Proceeds: Another option is to sell the home and divide the proceeds equally or based on a percentage agreed upon by both spouses. This is often the most straightforward solution if neither spouse can afford to keep the house on their own.
• Defer the Sale: Some couples agree to defer the sale of the home until a later date, such as when the children graduate from high school. In this case, one spouse may stay in the home temporarily while both parties retain an ownership interest.

Factors That Influence Who Keeps the House

Several factors come into play when determining who keeps the house during a divorce. These factors include:

• Child Custody: If children are involved, the court may favor keeping the custodial parent in the family home to provide stability for the children. The court will consider the best interests of the children when deciding who stays in the house.
• Financial Resources: The spouse who wants to keep the house must be able to afford the mortgage, property taxes, and maintenance costs on their own. If one spouse cannot afford to maintain the home without the other’s income, selling the home may be the best option.
• Equity in the Home: The amount of equity each spouse has in the home will also be a factor. If one spouse contributed more financially to the mortgage or improvements, they may have a stronger claim to a larger share of the home’s value.
• Emotional or Practical Attachment: Sometimes, the decision to keep the house is based on emotional or practical reasons. If one spouse has a strong emotional attachment to the home, or if the home is conveniently located near work or family, the court may take these factors into account.

Can I Afford to Keep the House?

It’s essential to consider whether you can realistically afford to keep the house on your own. In addition to the mortgage payments, you’ll need to account for property taxes, homeowners insurance, utilities, and ongoing maintenance costs. If you want to keep the house, you may need to refinance the mortgage in your name, which could be challenging if your income is significantly lower than it was during the marriage.

It’s also important to consider whether keeping the house is the best financial decision. While you may have an emotional attachment to the home, it may make more sense financially to sell the house and use the proceeds to start fresh.

Negotiating a Fair Settlement

Dividing the family home can be complicated, but with the help of an experienced divorce attorney, you can negotiate a fair settlement that works for both parties. Whether you want to keep the house or sell it and split the proceeds, your attorney can help you navigate the process and ensure that your financial interests are protected.

Contact Us for Help with Property Division in Divorce

If you’re facing a divorce and are concerned about who will keep the house, our experienced divorce attorneys are here to help. We’ll guide you through the legal process, explain your rights, and work to secure a fair outcome for you. Contact us today to schedule a consultation and discuss your options for dividing the family home.