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Table of Contents<br><br>Three Great Ways to Split the House after a Divorce.<br>Four Tips on How to Prepare For Divorce Mediation.<br>Three Wrong Notions Most People Believe About Property Division in A Divorce.<br>
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Table of Contents Three Great Ways to Split the House after a Divorce. Four Tips on How to Prepare For Divorce Mediation. Three Wrong Notions Most People Believe About Property Division in A Divorce.
Three Great Ways to Split the House after a Divorce In the event of divorce, one of the major issues that arise is splitting the most significant asset between you and your ex own fairly. No doubt, tax implications of a home sale and lifestyle plans are part of the decision-making processes in a divorce; there is no way you can dodge the tax and financial consequences. But, what if I told you there are stress-free ways to splitting a house after a divorce occurs. Here’s the catch: We have listed three effective ways that work for most people. Keep reading. You would find out.
1. Purchase your Ex-Spouse’s half of the House The only way a buyout works is if you qualify for a new mortgage, or you have the money at hand. In reality, the amount you pay your ex-spouse does not have to be the exact amount of half value of your home. What happens is that you will take the larger portion of the savings while your spouse gets less than half the home price. To find out the value of your home, it is best to contact a real estate professional to get an accurate and recent price opinion. You can also pay an appraiser to value your home, but do not rely on an online estimate to evaluate your home.
If you opt for this option, you have to ensure you have a written proof that your ex-spouse paid off existing home-equity lines or mortgage. The reason for the document is to prove that you are no longer responsible for the debt. The good news: There is a possibility that you will not owe any capital gain taxes when you sell half of your house as part of a divorce.
2. Retain the House and Take Turns Living There There are cases where a family chooses to maintain the same house after the divorce. The children would reside in the original home while the parents take turns to live with the children. In such cases, the parents agree to deduct and share the expenses such as property taxes and mortgage interest between each other. It is important to note that you can only deduct mortgage interest if you are obligated to pay from a mortgage or you own the home. What’s more? Keeping the house and taking turns residing there; give the impression that you and your ex- spouse are great parents because the kids are put first.
3. Keep the House until the Children Move Out, Then Sell It There are cases where one parent chooses to remain in the home with the children while the ex-partner moved out of the house after the divorce. The moment the children move out, the parents sell the home and divide the profit. If by any chance, one of the spouses moved out and the person has not lived in the house for two years in the past five years, there is a possibility of owing taxes on the profit gotten from selling the home. As long as your divorce agreement highlights your plans to sell your home, the IRS will regard it as meeting the two-out-of-five-year residence rule. The Perfect Thing To Do It is best to get an experienced property lawyer who would help you carry out a comprehensive research and get the right allocation you desire.
Four Tips on How to Prepare For Divorce Mediation The decision to divorce is one long and difficult road. However, if you have made up your mind to go down this road, it is best to have a detailed plan that would help your transition smooth. What if we told you that there is something you can do to get the best outcome you desire. What is it anyway? Mediation is the answer. The idea behind mediation is reaching an agreement that works for your life. The agreement also involves you not spending your children’s college fund on attorney fees. What is more? You do not get to spend significant time or stress in court. Keep reading. You will get four tips on how to prepare for divorce mediation.
1. Accept To Mediate First off, in most states, divorce mediation is voluntary; the best way to table all the issues is to agree to mediate. For the mediation to be effective, both parties need to have a meaningful conversation. However, this does not imply that you and your spouse have to be buddies. Before you agree to mediate, it is necessary to go over the advantages and disadvantages that are involved before you proceed. Other questions such as logistics, how the fees would be split, what dates and times you need to commit to the sessions, and more are necessary to ask before proceeding with the whole process.
2. Get Organized Putting things in order is the next thing after you have agreed to mediate. Since it is not the mediator’s job to determine what to do with what you have, it is crucial to make a list of all your assets and possessions. Some of the things you should include are retirement accounts, financial products, vehicles, all real property, life insurance policies, personal properties, etc. In summary, do not leave any stone unturned—include everything you own. Other records that could also come in handy include pension disbursements, child support payment, social security, paystubs, etc. Expenses like utilities, food, mortgage payments, credit card payments, car loans, and others should be included. It is crucial to consult with an attorney or check your local rules for financial affidavit during the dissolution process.
3. Set Your Goals The moment you have a comprehensive list, you have to decide what you want to do. No doubt, the process can be tasking; you have to make out time to figure out what is most and least important to you. You will have to create a list on things you will love to get, things you can negotiate, and essential things you cannot leave behind. While you are at it, draft a budget and make a projection. The projection gives you an idea of your post-divorce budget.
4. Have Your Kids in Mind Divorce is usually hard on children; it is best to communicate what is happening to them regardless of their ages after all it affects their lives too. Both parents must agree and talk to the children together. The process will not be easy on your children; you have to help them through the process by providing a loving, positive, and stable environment. You also have to consider where your kids will spend most of their time.
Three Wrong Notions Most People Believe About Property Division in A Divorce In the US, different states handle the division of marital assets and liabilities when a divorce occurs. Knowing how the property and debts are divided in a divorce is one thing; it is another thing to know which property is meant to be distributed. The marital property is usually the one subject to division in a divorce, while the non-marital or separate property is not. In other words, only the property acquired by the couple during the marriage is liable for the division. It sounds simple: Well, as simple as it may appear, there are a lot of misconceptions when it comes to the property sharing process in divorce—that is why we are going to be thrashing them out in this article. Here, we have listed three common myths about property division in a divorce. Hang in there; you will find out.
1. “Equitable Property” Means the Property is shared Equal This myth is quite popular amongst a lot of people who get their divorce done in court. They always believe that they have a 50/50 possession of their marital property when the judge rules for an equitable distribution—what they do not know is that it means the judge will weigh the case based on certain factors called the Ruff-Fischer guidelines. The guidelines were first setup in a 1952 case involving Ruff v. Ruff; it was later modified in 1966 in the case of Fischer v. Fischer. The factors require the judge to consider: the earning ability of the parties, their respective ages, their physical and health condition, the length of the marriage and conduct of the two parties while they were still married, amongst others. Based on the above factors, the court will strive to make an equitable division, not necessarily sharing the property equally—sometimes, it is not a win-win for both parties. 2. “During The Marriage” Is The DURATION Between The Wedding And Divorce as “during the marriage.” — — — —
2. “During The Marriage” Is The DURATION Between The Wedding And Divorce There is a lot of assumption that the period between the wedding and the divorce is represented as “during the marriage.” But here is the kicker: The law does not see it in that way. In some states, the court gives the divorcing couple the chance to pick the date of valuation of the marital property. However, the court has the right to annul the valuation date if it is unable to agree with the proposed time picked by either of the divorcing couples or both. In such cases, the court goes ahead to choose a date. So, does this mean anything? Yes, it does—because some assets can face a drastic fluctuation in value to the date alteration.
3. If I Owned It Before Marriage, Then It is Mine Forever It may sound unfair, but it is an absolute fact: property owned by a party before marriage is not excluded from consideration, valuation, and sharing. Except in a case where the assets of one party were excluded beforehand by a premarital agreement, all the assets owned by both parties, gotten individually or jointly, are placed on the table for sharing. Final Word—How NOT To Be Caught Unawares For you to avoid any surprises, it is best to get the help of a professional and experienced property division lawyer—who will go ahead of you to do all the necessary research and findings—so, you can be adequately defended in court and get your desired assets.
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