What Happens to My House During a Divorce?

Going through a divorce is a difficult and emotional process. In addition to the emotional burden, there are also many legal aspects that need to be addressed, such as the division of assets. One of the most significant assets that couples often have is their house, so it’s important to know how this asset should be distributed during your divorce. 

Equitable Distribution in Arkansas

In Arkansas, the principle of equitable distribution is followed when dividing marital property. This means that rather than a strict 50/50 split, the court seeks to divide the marital property in a fair and just manner. To determine what is fair, the court considers several factors, such as the length of the marriage, each spouse's contribution to the acquisition of the property, their earning capacity, and their financial needs.

Determining Marital Property

Before the court can divide the property, it needs to determine what qualifies as marital property. Marital property includes any assets acquired by either spouse during the marriage, regardless of whose name is on the title. This includes the family home, vacation homes, rental properties, and any other real estate acquired during the marriage. 

Separate Property and Tracing

Not all property acquired during the marriage is considered marital property. Separate property, such as assets owned prior to the marriage, inheritances, or gifts received by only one spouse, is excluded from the division. However, it's important to note that if separate property was commingled with marital assets or used for the benefit of the marriage, it may be subject to division. 

Options for Handling the House

When it comes to the family home, there are a few options for handling its division:

• Sell the House: The most straightforward option is to sell the house and divide the proceeds between the spouses. This may be the best choice if neither spouse wants to keep the house or if selling is necessary due to financial reasons.
• Buyout: If one spouse wants to keep the house, they can buy out the other spouse's share. The buying spouse will typically need to refinance the mortgage in their name to remove the other spouse's financial responsibility.
• Co-ownership: In some cases, the divorcing couple may choose to continue co-owning the property. This scenario usually occurs when there are minor children involved, and the parents want to provide stability for them. However, it can be challenging to manage co-ownership, and it's important to consult with an attorney to establish a clear agreement.

Seeking Legal Guidance

Navigating property division during a divorce can be complex, especially when it comes to your house. Consulting with an experienced Arkansas divorce attorney is essential to protect your rights and ensure a fair outcome. Lead attorney Lauren Graham has extensive experience in family law matters, including property division. The Graham Law Firm PLLC can provide individualized guidance based on your unique circumstances and help you achieve the best possible resolution.

Contact The Graham Law Firm PLLC Today

If you're going through a divorce in Paragould, or the surrounding areas, and need assistance with property division, contact The Graham Law Firm PLLC today. Call (870) 586-5753 or visit our website to schedule a consultation.