People often give divorcing spouses advice with the best of intentions. Some of that advice is sound. Warnings to secure legal representation even if the divorce begins amicably is valuable. So is advice to establish separate financial accounts to avoid complications in the early stages of divorce.
Other advice, while potentially well-intentioned, may not be accurate or helpful. For example, people often tell homeowners not to move out because they lose their interest in the home by abandoning the house. Contrary to what some people claim, relocating for peace during a divorce does not constitute abandoning one’s marital home.
Each spouse has an interest in home equity
The property division process requires a careful look at circumstances and an equitable division of marital property. Possession of the marital home, meaning who stays there, does not grant one person all of the equity accumulated in the home.
Both spouses typically still have an interest in the property, especially if they both continue to invest in its maintenance and upkeep. When addressing the home for property division purposes, who stays in the home is only one of the considerations.
Appropriately dividing equity is another key decision. Spouses usually divide equity by refinancing or by using the value of the home to guide other property division determinations. Particularly in cases involving high conflict levels, moving out may be the best choice. It does not automatically eliminate the right to receive a share of the home’s equity.
Those hoping to protect their interest in their marital home may need help navigating divorce to better ensure they do not endanger their right to receive a portion of the accumulated equity. Spouses who learn more about property division rules can make informed decisions regarding their marital home and their living circumstances.