Baltimore County & Towson Divorce Lawyer | Marital Property | The Marital Home.
The Marital Home In Baltimore & Towson.
The Marital Home is Almost Always Marital Property
The marital home is usually largest asset to be determined during a divorce. Whether the marital home is titled to one spouse or to both spouses as tenants by the entireties does not matter. The big questions concerning the marital home:
- Was the marital home purchased during the marriage? If so, did either spouse use pre-marital funds, gift, or inheritance to purchase the property or improve the property?
- If the marital home was owned by one spouse before the marriage, what contributions have been made during the marriage in the form of mortgage payments and home improvements?
- Note: It does not necessarily matter whose name is on the house, whose name is on the mortgage, or who made the contributions. The big question is what contributions were made after you said, "I do."
Options for the Marital Home
Option #1: Spousal Buy-Out
One spouse can "buy out" the other spouse's marital interest in the home.in a lump-sum payment or a series of payments over time, which are structured as a marital award for family law, tax law, and settlement purposes. When there is a spousal buy-out, the one who keeps the house is usually responsible for re-financing the home in his or her own name.
Option #2: Sell The House Together
The parties can agree to sell the house together and split the proceeds. If the marital home is to be sold, certain questions arise:
- How will expenses be paid while the home is listed for sale?
- What proceeds from the sale are to be divided?'
- Are there any claims to contribution (Crawford Credits) to be awarded to change how the the sales proceeds will be divided?
If there is no net equity in the marital home, divorcing individuals should speak with their attorney about a short sale. A short sale involves the lender agreeing to take a lower amount of money for the home, and once that amount has been paid, the original debt will be cancelled. You should be aware, however, that short sales can harm your credit and they may come with a variety of tax implications.
Option #3: Allow The Court Order a Sale in Lieu of Partition
When parties own the house together as tenants by the entireties and are unable to reach an agreement to refinance or sell the house together, the court will order a sale in lieu of partition. In this situation, the court will typically order the house be auctioned and the net proceeds divided equally between the parties.
Option #4: Family Use Personal Property
The Court may postpone disposing the house for up to three years if the home is family use personal property. Typically, this is when the court finds it is in the best interests of the children to continue residing in the marital home.
Responsibility For The Home During Separation
When two spouses own land together, they are considered cotenants. The law states that, "Ordinarily, a co tenant who pays the mortgage, taxes, and various carrying charges of jointly-owned property is entitled to contribution from the other." The purpose of the equitable right of contribution is to prevent one spouse from unjustly enriching himself or herself because the other spouse is paying the mortgage. The court determines whether to credit one spouse for contribution towards the maintenance of the marital home on a case-by-case basis. As a recent publication from the Baltimore County Bar Association recently noted, exceptions to the rule of contribution exist in the case of ouster, agreement between the parties, or where mortgage/home-related payments are made by selling marital property.
Call (410) 321-4994 For a Consultation With Towson Divorce & Child Custody Family Lawyer Amar S. Weisman.
Please Call (410) 321-4994 to schedule a Free Consultation. The purpose of the consultation is to decide whether you want to hire Amar S. Weisman. To obtain legal services, you must pay a retainer, see Policy on Fees/Costs. The law firm is next to The Circuit Court for Baltimore County, at 305 Allegheny Avenue, Towson, MD, 21204. We represent clients throughout the Baltimore area including Aberdeen. Abingdon, Bel Air, Bowleys Quarters, Catonsville, Cockeysville, Edgewood, Essex, Lutherville, Owings Mills, Parkville, Perry Hall, Rosedale, Sparrows Point, Timonium, Towson, Westminster and White Marsh.