A divorce brings with it a number of important family legal issues. Alberta residents may be interested in some information about some problems surrounding home ownership after the end of a marriage.
When a home-owning couple divorces, they may have to make some difficult decisions regarding the home. While some of the decision-making is based on sentimental feelings surrounding the house, such as the fact that the former couple’s children grew up in the home, often the deciding factors are financial in nature. One of the major concerns regarding home ownership after divorce is whether or not the spouse that keeps the home can afford it. This involves two major issues: buying out the other spouse’s portion of the home and dealing with the ongoing financial costs of home ownership.
In most cases, the spouse who does not keep the home will still retain equity in the home. This means that the other spouse must compensate them for that portion of the home, either with cash or with other assets. This may involve refinancing for more than the current mortgage value in order to compensate the spouse for their equity. Beyond this, the ongoing cost of owning a home may be too much to handle. Insurance, taxes and upkeep on the home can cause financial difficulties after a divorce, especially when the home-owning spouse is left with a lower income on their own.
Home ownership is just one of many factors that enter into the property division equation in a divorce. A lawyer with family law experience may be able to help a spouse through the process and understand the important family legal issues. These can include child custody and alimony, along with the fair division of the couple’s marital property.