The marital home is often that asset that has the biggest financial value, as well as the largest emotional tie. Determining what to do with this major asset can be challenging, so it’s critical that you know what options you have.
In Georgia, property division is handled via equitable distribution. This means that it’s based on what’s considered fair instead of what’s equal. Because of this, there is some leeway about how the marital home is handled.
Selling the marital home
One option that’s possible is selling the marital home. This is a chance for both parties to walk away with a clean slate. The home must be appraised so that a fair sale price can be established. Both parties will have to agree on the sale price and terms.
If the sale price after fees are taken out is more than what remains on the mortgage, the remainder of the money can be used to pay off other debts. Alternatively, you and your ex could split those funds.
The downside of this option is that it may take time to sell the home. During this time, expenses related to the home, such as insurance, utilities, upkeep, taxes and mortgage payments will have to be covered.
Buying out the equity
Another option is for one party to buy out the equity in the home. This would allow that party to own the home, but they may need to obtain a new mortgage in their name only. Having a proper appraisal so the equity amount can be determined is critical. In some cases, this is the preferred option if there are children involved because it would enable the children to remain in the home.
The marital home is only one of the assets that has to be handled during the property division process. You have to consider the others and look into how debts will be divided. It may be beneficial for you to work with someone who can walk you through the options so you can decide how to proceed.
