High-value assets often require careful consideration during a divorce. People worry about protecting their retirement savings and investment funds. Their home equity may also be a major priority.
For many married couples, the home where they live together represents years of physical labor and financial effort. People accumulate equity by making down payments and then contributing towards the principal balance due with each monthly mortgage payment. They can also increase the value of their home and, therefore, the equity they have accrued by improving or repairing the property. Homeowners considering divorce do not want to risk their equity to correct an unhappy family situation.
Do people thinking about moving out when they file for divorce need to give up their interest in their home equity because of that decision?
One choice does not negate years of investment
There are many reasons that people choose to leave the family home during divorce. Those dealing with emotional or physical abuse may want to find a safer living arrangement. Others simply want to avoid the hostilities that may come from continued cohabitation while the marriage is near its end.
The decision to move out of the marital home into an apartment or possibly the home of a family member does not constitute abandonment. Instead, it is often the most practical and safest decision one spouse can make in a complicated situation.
The spouse who leaves the marital home still has an interest in the value of the property. Under equitable distribution rules, the equity accumulated during the marriage through their financial contributions and maintenance efforts is still theoretically subject to division in the divorce.
Those who leave the home can ask the courts to allocate a fair share of the accumulated equity to them in the final property division decree. They might even negotiate to resume possession of the home after the divorce. The spouse who leaves might eventually move back into the home after the divorce is complete.
Ensuring the maintenance of one’s home despite leaving is sometimes necessary for those hoping to protect their interest in real property throughout a divorce process. The guidance of an attorney can help spouses to better ensure that they protect their interest in valuable assets and secure reasonable terms during equitable property division negotiations or litigation in family court.