People often have questions about their finances when they start considering divorce. Spouses in Indiana not only have to pay for divorce proceedings but also have to find ways to divide their property with their spouses.
Those who own their own homes have more to lose during the divorce than those who only rent their living spaces. A divorce could potentially force someone to downgrade from an owner-occupied living unit to a rental unit where they have minimal financial security. Given how much couples invest in their homes, it is understandable that many people are primarily concerned about their houses when they divorce.
A home is likely subject to division
Usually, spouses don’t continue owning the home jointly after the divorce. However, they likely both have an interest in the property. Whoever keeps the home may have to compensate the other spouse. There are rare exceptions for scenarios where people owned a house prior to marriage. Even then, a signed marital agreement might be necessary to protect the home as separate property, as spouses have to use marital assets to maintain the property or pay taxes on it. If the spouses purchase the home together, then its value is almost certainly vulnerable during the divorce.
Spouses have the option of setting their own terms
The good news for someone preparing for divorce in Indiana is that they don’t have to leave everything to a judge. They can potentially make arrangements with their spouse and settle property division matters outside of court. Spouses may need to look carefully at their physical ability to maintain the home and their finances. For some people, staying in the marital home isn’t necessarily the best option available. One spouse can give up their interest in occupying the home in return for a share of the home’s equity. They could also request other assets from the marital estate to compensate them for their share of equity.
Sometimes, neither spouse wants to keep the home, in which case selling the property and sharing the proceeds could be reasonable. If spouses cannot reach an agreement with each other, then a family law judge can make the final determination. Their goal when dividing property is to arrive at a fair or equitable solution for marital property.
Wither way, understanding how Indiana handles asset division can help people plan for life during and after a divorce. Equitable distribution rules help to protect someone’s interest in the home where they live, in addition to other assets accumulated during their marriage.