What Happens to the House After a Divorce?

The fate of a shared house after a divorce in New York depends on various factors. The court aims for an equitable division. With over three decades of experience navigating New York family law, a New York City divorce attorney from the Law Office of Vivien I. Stark, P.C. can help guide you determine what happens to your home after a divorce.

How Property is Divided in New York

Unlike some states that follow community property laws, New York follows the principle of equitable distribution, which means that marital assets, including real estate, are not automatically split 50/50. Instead, the court will divide property in a way that is considered fair and just based on several factors.

Factors Affecting Your Home in a Divorce

New York courts consider the following factors when dividing marital property, including the marital home:

Ownership and Financial Contributions

• Cost: What is the cost of the carrying charges for the marital residence?
• Down payment: Who contributed to the initial down payment?
• Mortgage payments: Who has been responsible for mortgage payments, property taxes, and insurance?
• Improvements and renovations: What is the source of the payments for upgrades or renovations to the property? If the source was separate property, the party using separate property to pay for the upgrades or renovations may be entitled to a credit.
• Separate property: If separate property was used to purchase or improve the home, it may not be subject to equitable distribution.

Marital Duration and Future Needs

• Length of marriage: Longer marriages often result in more equitable division, especially when significant marital assets are involved.
• Child custody and support: The court may consider the needs of any children under the age of 18 and the custodial parent’s need to remain in the family home.
• Future earning capacity: The court may consider the future earning potential of each spouse when dividing assets.

Quality of Life

• Quality of life: The court may consider the property division’s impact on each spouse’s quality of life, especially if one spouse has significant needs, such as health issues or disabilities.

Tax Implications

• Capital gains tax: Selling the home may have tax implications, particularly if its value has significantly appreciated.
• Property taxes: The ongoing property tax burden can be a factor in determining the division of the home.

These factors are considered on a case-by-case basis. Consulting with our experienced New York City family law attorneys can help you understand your rights and protect your interests during a divorce.

Options for Dividing the Home

In most cases, you have three options for handling the marital home:

• Selling the home: This may be the most straightforward solution, especially if the market is strong. The proceeds from the sale are divided equitably after paying off any remaining mortgage.
• One spouse buys out the other: If one spouse wants to keep the house, they can attempt to buy out the other’s share of the property. This often requires refinancing the mortgage or utilizing other financial resources.
• Co-ownership: This option may not be ideal for everyone, but sometimes spouses choose to continue co-owning the house, especially if there are minor children involved. This requires a clear agreement regarding financial responsibilities and the use of the property.

The Law Office of Vivien I. Stark Can Protect Your Rights During Property Division

Negotiating property division can be stressful, especially when emotions run high. Our experienced New York City divorce attorneys can help you explore all options and determine which are best for your family. Contact us today to schedule a consultation.