Who gets (stuck with) the house?

Back in the boom times of a few years ago, the biggest asset at stake in many divorces was the family home.  The financial equity, sense of stability, and emotional attachment made it very attractive to each spouse to end up with the home when the divorce was over and done with.  Fast forward a few years to the current housing market - it seems as if nearly every divorce we handle involves a home that is under water or close to it.  It also seems that with many people becoming unemployed or underemployed, neither party is able to take on the house payments on their own after the divorce goes through.  The fight has changed from who gets the house to who gets stuck with the house.

In the past, home owning couples going through the divorce process often had a lot of options on the table for how to deal with the family home.  One spouse could buy out the other spouse and remain in the home, and then refinance the loan to remove the other party's name.  The couple could agree to sell the family home and split the profit.  The couple could even agree for one person to keep the home and give their ex a lien for the equity in the property.

Now, the options for couples that have negative equity in their home are quite different.  Selling the home outright is often not feasible because both sides would have to come up with the deficiency during a time that they are saving for a new place to live.  Having one party keep the home is not ideal either - often the party that is awarded the home will no longer qualify for a refinance or qualified assumption of risk, which will leave the other party stuck with their name on a mortgage indefinitely, preventing them from qualifying for their own home loan.  And of course, the potential negative consequences of short sales and foreclosure are well documented.  

Given the changes in the home market and the effects it has upon divorce, it is important to work with an attorney who understands the current housing climate, and understands the options, benefits, and consequences of each available strategy.  At Vox Law we work to keep current in our knowledge of the current economic situation and we work with a team of professionals in the area who will be able to analyze your specific situation and present the options that will best help you meet your goals during the divorce process.  Our up-to-date knowledge and network of experts is why Vox Law is modern family law.