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What Should You Do with Your House During a Divorce?

What Should You Do with Your House During a Divorce?

In a divorce, one of the most taxing things can be deciding how to divide up your assets. It’s important to know your states laws about property division so that you are aware of your rights. In California, assets acquired by a spouse during a divorce belong to both of them equally, and must be divided equally in court. When deciding what to do with your house, you want to take into account the valuation date, which is the date when the value of the house was established. Normally, even if one of the spouses lives off of the property during the divorce, the houses expenses are divided evenly. If the property value increases after the valuation date, the spouse who stayed on the property may receive more money from selling the house. There is a lot to consider when deciding what to do with your house in a divorce, and your best option would be to discuss it with your attorney. However, boiling the process down to a few key decisions makes it a lot easier to understand. First off, determine if either spouse wants the house, and if so, if that spouse can afford it. If the answer to both those questions is no, you can sell the house and equally divide the money. To find out if the spouse can afford to keep the house, simply write up a future budget. Next, determine if there are enough assets in the marital estate for one party to buyout the other. If not, again you should sell the house and split the money. If there are sufficient assets,...
Money, Property & Divorce

Money, Property & Divorce

Going through a divorce is a very strenuous and stressful time for a divorcing couple. While most people are thinking about child custody issues, financial matters, dividing their assets and debts, canceling credit cards and closing bank accounts, it also creates a significant need to update your estate plan. Because of the upcoming change in personal finances, assets and planning objectives, a revision of an estate plan is necessary for both spouses. Of course, there’s the fact that most spouses no longer want their ex-spouse to remain as beneficiary of his or her estate plan. Estate plans are typically comprised of wills, powers of attorney, insurance contracts, beneficiary designations, trusts, and healthcare directives, all of which you may want to revise after a divorce. It is generally a good idea to update your estate planning documents after any major life events, such as a divorce or a death in the family. Doing so ensures that information within those documents reflects any changes in the circumstances of your life or in the lives of your family members. If a married person fails to change his or her estate plan after a divorce and then dies, the possibility exists that the ex-spouse may take a share of the decedent’s estate, or may take under the terms of a beneficiary designation. While a divorce automatically terminates some of the ex-spouse’s rights, in many cases it does not. Understandably, divorce and death are not fun things to think about; however, divorce is one of the most important times to update an estate plan – or create one. Working with a qualified attorney, estate...