Couples divorcing in Pennsylvania must decide on a fair property division agreement. Many people in this situation disagree about who should stay in the home they shared during the marriage.
These are the considerations to keep in mind when negotiating property division in a Keystone State divorce.
With real estate values on the rise across the nation, couples should have a current appraisal before making a property division agreement. Under Pennsylvania’s equitable division standard, each spouse has a fair share of the equity in the home. For example, if you have a $100,000 mortgage with a property value of $300,000, the equity is $200,000.
If only one spouse desires the property, he or she may negotiate to “buy out” the other spouse. The mortgage company may require a refinance on the loan to remove the second spouse and pay out the available equity. The decision to keep the home often depends on whether the couple has children and who will retain primary custody. When the couple does not have children, work and family responsibilities often drive this decision.
If neither person wants to keep the home or can afford to do so, they can sell it and divide the profit fairly. Doing so can help both spouses move on to buy or rent a different residence.
Review the decision about keeping or selling the home in divorce within the context of the entire property division agreement. Sometimes one person will forgo claims to other assets in order to keep the family home.