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Property division and a marital home: How are proceeds shared?

| Nov 19, 2020 | Property Division |

There are many issues that may be in dispute in a Florida divorce. Although child custody, child support and alimony generally come to the forefront, property division is also a contentious topic. For a couple that owns a home, the sale of the property and who is entitled to what when the proceeds from the sale are divided can be the foundation for acrimony. There are other issues that should be considered. The law specifically addresses this.

Factors to consider when selling a marital home

When the marital home is sold, there can be setoffs or credits if they are allowed under the settlement or court decision. A settlement agreement is frequently the easiest way to settle property division and any other aspect of a family law case. Often, it is not possible for a variety of reasons and the case must be decided by the court. There are certain factors that the court will consider when it is deciding on how to split the proceeds from the sale of a marital home.

Included will be if there is an award of the marital home for the use and possession of one party and the justification for that decision. Alimony may be awarded to the party who is in possession of the home. Since there are costs with the home – mortgages, taxes and expenses – this can be factored in with the court decision. If child support is awarded to the party in possession of the home, the court will gauge if the award will be enough to pay the housing expenses. The value of the house will be calculated for both the party in possession and the party who is not in possession. The court weighs tax considerations and who will be able to claim the property. Selling the property could result in a capital gains tax and the court will assess who will be obligated.

Having legal advice may be essential with a dispute over property division

Property division can be problematic, especially when it comes to a marital home. Often, real estate is extremely valuable and it is understandable that each side will want a significant portion of the profits. The law deals with this and other parts of a case. For both sides, having legal advice may be essential to be protected and to reach an acceptable outcome. Consulting with a firm that is experienced in all areas of family law can provide guidance and help throughout the process.