Property Division in a Tough Economy – How to Handle the Marital Home

If you’re getting a divorce, you will soon find that the property division is one of the most contentious issues.  Outside of custody, the division of marital assets is the most costly legal battle you can enter into.  In the past, spouses who were splitting up were advised to act quickly and decisively with regard to the marital home, rather than waiting to sell it until the market improves.  However, after a protracted housing slump, the real estate market may dictate otherwise.  If your property settlement requires that your home is sold before marital property can be divided equitably, you may have to be patient.

A recent article published by Marrison Law, “Divorce Attorneys in Colorado Springs – Is Refinancing the Marital Home a Smart Move?,” offers some tips from Colorado Springs divorce attorneys.

One attorney says that when the market doesn’t cooperate with your plans, it may be better to refinance.  Today’s low mortgage rates make this possible, and while it may be costly, it will require a property valuation, which is something that would need to be done anyway. It also provides that each spouse will be paying their fair share of the mortgage liability until the home is sold.

Another divorce lawyer suggests that the property division be done with the real estate market in mind.  In other words, if one spouse will have primary custody anyway, why not let them take the full equity in the home in exchange for lower spousal support payments.  This way, nothing needs to be done with the marital home until a much later date.  It may be risky if you suspect the real estate market will continue to decline, but it could be a win in Colorado Springs, where the market has already started to recover.

Of course, if you are trying to handle property division on your own, you could run into other issues down the road.  Depending on your financial situation and the length of your marriage, the process of disentangling yourselves financially can be quite a task.  A divorce lawyer can be very helpful at time like this, and in many cases he or she will recommend mediation before litigation.  If you find yourself in this position and you need advice on what to do with your home, consult with a Colorado Springs family lawyer.