Home may be where the heart is, but, when a couple’s marriage is on the rocks, it can be a point of contention. During the divorce process, spouses in New Hampshire will need to divide their assets, which can include the family home. Some people may wish to stay in the place where they are familiar, especially if they have children, while others may want to leave the past behind them and set forth anew. It is important for divorcing couples to understand what options they have when it comes to property division and the family home.
One option is for one spouse to keep the home, and either buy out their ex’s interest or keep the home in exchange for an equivalent amount of marital assets. However, homeownership can be expensive. Repairs and updates will need to be made from time to time, mortgages need to be paid, and there is also homeowner’s insurance and property taxes to contend with. If a spouse wants to fight to keep the family home, they will want to make sure they can afford to do so on a single income.
Another option is for the spouses to sell the house and divide the proceeds. However, this has financial consequences, too. Depending on the circumstances, if a couple’s home has experienced a significant amount of appreciation from the time they bought it, they may encounter capital gains taxes when they sell. The amount of capital gains taxed owed depends on state law.
So, homeowners going through a divorce will want to carefully consider whether it is in their best interests to fight for the family home, or let it go. It is a decision that can impact a person both financially and emotionally. Some people find it helpful to have professional guidance from someone familiar with family law and divorce.
