Alaska couples who are ending their relationship – whether they were married or were in a domestic partnership – are likely to have accumulated property while they were together. Many owned a home. This can be of significant value with both sides having invested in it and paid for its purchase, maintenance, improvement and upkeep. As property is divided in their case, it is imperative to know various facts about splitting the home.
Valuing and addressing a marital home when ending a relationship
Because real estate is likely one of the most valuable properties a couple will have, it is important to know its value and how much is owed when deciding what to do with it. Perhaps they put a down payment on it and have been paying a mortgage for several years. The amount that is owed on the property must be calculated. So too is it essential to know how much it can be sold for. In many instances, there is substantial equity as they determine what will become of the property.
There are several ways to handle the home. If one person wants to retain it – as is common when there are children in the relationship and the custodial parent wants to limit the disruption – one person will need to buy the other person out. This can be done through a lump sum or by securing a mortgage.
They could trade property such as automobiles, jewelry and other valuable items in exchange for the home. Refinancing can be helpful for one person to retain the home. This is often done if both parties’ names are on the mortgage and one plans to keep it. Finances will play a key role in the mortgage. Of course, there is always the option of selling the property and dividing the proceeds.
Strive to ensure a fair resolution with property division
Property division is potentially one of the most contentious aspects of a family law case. In some situations, the parties can negotiate a settlement and avoid a rancorous court dispute. In others, it is necessary to go to court to settle matters.
With a jointly held home, there are key aspects to remember to make sure there is a reasonable outcome and both sides are treated fairly. From the start, it is wise to know what the objective is and to formulate viable strategies to achieve it.