Who gets the house in a divorce

Occasionally, clients ask us who will get the house in a divorce. The short answer (that our clients don’t like to hear) is that it depends. 

Is it Marital Property or Separate Property? 

Property that was purchased by one of the spouses while they were married is called Marital Property. It doesn’t matter if the title features one name or both names. As long as it was purchased during the marriage, it’s considered marital property. 

Separate property pertains to property that a spouse purchased prior to their marriage. For example, if someone purchased their first house after college and then a few years later got married and lived in that house together, the property is considered separate.

The type of property involved is important because it plays a role in the divorce. If the home was considered separate property, it stays with whoever purchased it. If it’s marital property, the home’s value will be considered part of the assets getting split. 

Who Gets the Kids? 

Another factor that can determine who gets the house is the kids. However, if no young children live in the house at the time of the divorce, this doesn’t apply. 

For instance, suppose the father has visitation rights, but the mother gets custody of the children. In that case, the mother is more likely to get the house in the divorce because it provides her with a good place to raise the kids. 

Equitable Distribution Plays a Role in Who Gets the Home

As you go through the divorce process, you’ll likely hear the term “equitable” a few times. Essentially, this means fairly divided. Note that it does not mean equal – although many times, that’s how it shakes out. 

Let’s take the case of a couple that has a home worth $200,000 and financial assets worth $250,000. Their total assets are $450,000. 

 With equitable distribution dividing assets and finances the court may say one spouse can keep the home and $25,000 while the other spouse gets the rest of the $225,000 in assets. 

Unfortunately, the case usually isn’t this simple. Still, it gives you an idea of how equity comes into play in who gets the home. 

Who Can Afford the Home?

It may seem obvious, but it should be said – if one of the people getting divorced can’t afford the home on their own, they probably shouldn’t stay in it. 

For example, maybe it was a two-income family, and the home was a significant expense. It will probably be hard for one person to pay for it after dropping down to one income. Things like alimony or child support help, but they shouldn’t be relied upon to pay the mortgage every month. 

Can the Home be Sold?

Now and then, the court will order the home to be sold. This makes it easier to divide the assets between the two individuals because it brings extra cash into the picture. 

Conclusion

For personalized guidance and advice on how to secure your home in your divorce, send us an email at info@voneschlaw.com. We’re here to help you in any way that we can. 

Business Division in a Divorce

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Business division in a divorce is an issue which comes up with many challenges. The parties separating can fail to agree on many aspects. In order to get the issue solved to your satisfaction, you need to hire a family lawyer who understands how the process is handed. There are many options which can come into play when in the court of law trying to divide your business. Among the options available include:

The business is awarded to a spouse who has greater involvement

The court of law will assess the evidence available and award the business to the spouse who tends to have greater involvement in the business. The other spouse who has less contribution towards the business will be compensated accordingly. The compensation will be based on the level of involvement of the two spouses.

The business may be sold

In some cases, the court will study the claims from each party and decide to sell the business. The business will be sold and the proceeds will be shared among the spouses basing on their contribution. This is a situation which the family court can adopt if letting the business with one of the spouses will fail to meet different needs which may have been legitimately demanded by the spouses.

The business can be jointly operated after divorce

In rare occasions, the business can be jointly operated by the parties after separation. The court will have to assess the two options and decide whether letting the business to be run by both parties will be practical. The two parties should demonstrate to the court that they are willing to have the business running while they relate as business partners.

Valuation and Compensation after Divorce

After the court awards the business to one party, who was more involved in the business, the issue of compensating the other party rises. In this case, the court will have to get reports from a qualified financial expert who will assess the value of the business assets so that the court will compensate the other party accordingly to his or her contribution.

Sharing Business Assets in a Divorce

The court can decide to allow the parties involved continue to jointly run the business. In such a case, both the parties involved should demonstrate to the court that they are necessary for the running of the business. If any spouse will ask for the division of the assets, the court will deny option of jointly running the business venture after divorce.

The Equitable Division Of Property And A Business

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The Von Esch Law Group prides itself on its unique expertise and experience in matters of property division and the division of other assets. Our business valuation process is handled by our in-house business and real estate department which can provide valuable insight into the many complexities of business and property division. Our experts include highly qualified investigators, appraisers and forensic accountants and these experts are a formidable team when working to achieve the best interests of our clients.

We know that many factors are involved in assessing the character of a property and the property’s current value. The complexities of this process include but are not limited to:

-The origin of the property or the business (Is the property separate or community property?)

-The valuation of the property and the busienss.

-Ownership agreements and structure

-Accounting practices

-The business type or class

-The existence of a breach of fiduciary duty

-The existence of Prenuptial and Postnuptial agreements.

The primary factors in assessing the value of assets are designed to:

-Achieve an equitable division of property and a business.

-Determine property and business buy-outs.

-Protection for our clients from unfair asset division demands.

All parties to an equitable division of assets will have a perception of what the value of each asset is, and usually they do not share the same perception. Since there are several approaches to establishing an equitable valuation, our expert staff will use the most accurate methods.

The commonly accepted method used to establish the value of property involves the assessment of data that will establish value according to the value of similar properties in the area adjusted for any high-end improvements. Our experts know the best method to use for ensuring that our valuation will be approved by a court if that step is necessary. However, our approach is so thorough and very well documented that the opposition usually will not oppose it.

Our methods for valuating a business are much more complex, but our staff is highly trained and very well experienced in valuing a business regardless of its activity. We go well beyond the minimal valuation of using just the money that would be derived from the sale of assets less the amount required for debt liquidation. Using complex but proven mathematical formulas, we will look at trends found in historical earnings and the results of gross income multipliers. Assessing the value of the goodwill of the business is also important in arriving at a value.

Once a value has been established, we will recommend a method for equitable disposition of the business. We will protect the interest of our client in making this recommendation. Selling the business may not be the best alternative, so we can recommend a buy-out agreement for the other party. We can also structure a continuous operation agreement with a structured schedule for buy-out payments over a period of time.

The Von Esch Law Group can deal successfully with any challenge you face in a division of property and a business. Our experts will manage any challenge you face in these issues.