When either spouse decides to file for divorce, it is common for one spouse to move out of the marital home. Contrary to what some people assume, moving out of the marital home does not automatically end someone’s interest in the property during a Minnesota divorce. They still have an interest in the property and could even seek to regain possession of it again after the divorce.
Equitable distribution laws generally entitle both spouses to a fair share of the equity in their marital home. However, spouses or the judge hearing their case may have to make some difficult decisions to divide valuable resources like real property. The following are solutions for handling the marital home in a Minnesota divorce.
Negotiating sole possession
Often, one of the spouses can continue owning and living in the marital home after the divorce. They need to have enough income and good enough credit to qualify for financing on their own. They also need to be able to offer other property of comparable value or equity from the home to their spouse.
Spouses can negotiate terms for one of them to retain the marital home, or judges can enter property division orders settings such terms. If spouses both want to live in the home after the divorce, judges may make the final determination. Factors including family connections to the property and child custody can influence the decision they make.
Selling the home
In some cases, neither spouse can afford the home without the other. Other times, neither spouse wants to continue living there after the divorce. People can agree to sell the marital home, or a judge can order its sale as the best solution in a litigated Minnesota divorce. In relatively rare cases, some spouses are able to set terms for joint ownership of the home following their divorce. Such arrangements are quite rare and may either involve a birdnesting custody arrangement or an agreement to treat the home as an investment property.
Regardless of who lives in the home after the divorce, each spouse should receive a fair portion of the home equity or marital property with a comparable value. Considering every viable solution for property division matters can help people trying to obtain a fair outcome in a Minnesota divorce.