When faced with the prospect of divorce, many couples in Maryland understand that selling their home will be part of the process. Selling a home in connection with a divorce involves several legal and emotional factors you will need to navigate. This is why it is important to understand key considerations and potential implications associated with selling your home in connection with a divorce.
Understanding Maryland’s Property Division Laws
In Maryland, property division during a divorce is governed by the concept of “equitable distribution.” This means that the court aims to divide marital property fairly, though not necessarily equally. When it comes to the family home, the court will consider various factors, including, but not limited to:
- Ownership of the property: to whom the house is titled. Most people own a house together as “tenants by the entireties,” but different arrangements are possible, so it is important to understand the ownership of your home.
- Contribution toward the acquisition of the property: such as financial contributions and non-financial contributions toward acquiring the home. This is relevant if the home was acquired by one spouse prior to marriage and can impact whether a premarital home has a marital value component.
Understanding the Value of Your Home
Most people finance their home with a mortgage and some even have a home equity line of credit. The fair market value of your home, less debt, is considered a basic net value of your home. A number then can be used when considering a marital property division for the purposes of a divorce.
Agreements Between the Parties
While not particularly common, some people do have prenuptial or postnuptial agreements in place. These types of agreements often have clauses regarding how a home is divided in the event of a divorce. Understanding your pre or postnuptial agreement is essential when determining how your home will be divided in the event of a divorce.
Custody
The custody and parenting time arrangement can be a significant aspect of how the home is resolved pending a divorce. If there is no agreement between the parties as to custody, then you are likely to have complex issues to deal with, including, but not limited to, determining who primarily resides in the home and for how long, the primary residence of the children, and the cost of carrying the home. The question of custody is likely to be one of the most central considerations when resolving the question of a home in a divorce.
Can You and Your Spouse Agree to Sell Your Home Prior to Divorce?
Of course. In fact, as one of the largest assets in a marriage, amicably resolving how to deal with the marital home is one of the best ways toward resolving your case as a whole. There are additional advantages as well:
- Liquidity: Converting the marital home into cash can provide much-needed liquidity for both parties, allowing for more options when determining a clean division of the remaining assets.
- Emotional Separation: Selling the marital home can facilitate emotional detachment from the marriage, as it often serves as a powerful reminder of the relationship.
- Avoiding Joint Ownership: Making joint decisions about a home’s maintenance and eventual sale can be challenging in the midst of a divorce, and selling resolves these questions.
What Should You Consider Before Listing Your Home?
- Consult with a Legal Professional: Discuss your plans with an experienced family law attorney to understand your rights and the potential outcomes, particularly if you believe custody will be an issue.
- Evaluate the Market: Work with a real estate agent to understand the current market conditions and the potential value of your home.
- Alternative Options: Explore other options, such as buying out your spouse’s share of the home (if possible) or keeping it and agreeing on a fair compensation to your spouse.
- Prepare for Emotional Challenges: Selling your home in connection with a divorce can be emotionally taxing as it represents the end of a significant chapter in your life. Seek support from family, friends, or professionals.
- Document Everything: Keep records of all financial transactions and decisions related to the sale to avoid disputes later.
Selling your home in anticipation of a divorce can be a complex process, legally and emotionally. By understanding Maryland’s property division laws, exploring all options, and seeking professional guidance, you can make informed decisions that will help you move forward with confidence. Remember, the goal is to reach a fair and equitable resolution that allows both parties to start their new chapters on solid ground.
If you’re considering this step, don’t hesitate to reach out to an experienced Maryland family lawyer for personalized advice tailored to your unique situation.
