Dividing the family home can be one of the most difficult parts of a divorce. However, the divorce court will aim for a fair outcome based on the facts of the case.
In North Carolina, this process follows the rules of equitable distribution. This does not always mean a 50/50 split, so it is important to understand how ownership of the home will divide equitably.
Determining who owns the home
The first step is to figure out if the home is marital or separate property. A home purchased during the marriage using marital funds usually counts as marital property. A home owned by one spouse before the marriage may count as separate property. However, the home may become partly (or even fully) marital if both spouses helped pay the mortgage, made improvements, or you add the spouse to your deed. .
If the home is marital property, the court decides what happens to it. The court may award the home to one spouse and give the other spouse other assets of equal value. In some cases, one spouse may buy out the other’s share. If neither wants it, the court may order a sale and divide the money.
Considering fairness when one spouse keeps the home
Several factors affect the court’s decision. These include the length of the marriage, each spouse’s financial situation, who will have primary custody of the children and whether one spouse can afford to keep the home. The court often considers it best for the children to stay in the family home if possible.
If one spouse keeps the home, the court may order that person to refinance the mortgage in only that person’s name. This helps remove the other spouse from the loan. If refinancing is not possible, the court may set a deadline for selling the home in the future.
Keeping or selling the home can affect both spouses’ long-term finances. The home may carry a mortgage, taxes, insurance and maintenance costs. The court looks at who can take on these responsibilities. The goal is to divide property fairly while respecting each person’s needs and the family’s circumstances.