Divorce brings many financial and emotional challenges, and deciding what happens to the family home can be one of the most difficult aspects. For many, the family home holds significant financial value and personal memories, which can complicate decision-making. Understanding the options available and the factors that influence the court's decisions can help you make a choice that aligns with your needs and goals.

Why the Family Home Matters in Divorce

The family home is often the largest shared asset, but it's also one deeply connected to personal history and stability. For couples with children, maintaining continuity for the children is usually of paramount concern. Reaching an agreement on the marital home usually requires careful planning and negotiation, and sometimes, a creative approach to settlement.

Key Options for Dividing the Family Home

New Jersey offers several pathways for handling the family home during a divorce, therefore:

1. One Spouse Buys Out the Other
   One option is for one spouse to keep the home by buying out the other's share of its value. This can be ideal if one party is emotionally attached to the property or has primary custody of the children. However, it requires substantial financial resources or creative financial arrangements.

2. Selling the Home and Splitting the Proceeds
   Many divorcing couples opt to sell the home and divide the profits. This approach allows both parties to make a clean break financially and often provides funds to facilitate their next residences (as individuals). Selling may be a necessary action when neither party can afford the home alone or, regrettably, one party blocks or rejects the other's buyout offer.

3. Co-Ownership for a Set Period
   In some cases, couples may decide to retain joint ownership for a specified period, especially if it provides stability for the children. This might mean that one spouse remains in the home temporarily until the children finish school, with an agreement to sell or buy out the other spouse's share at a later date. Who pays the mortgage, taxes, & other costs in the meantime will be part of the negotiation in this scenario.

Key Considerations for the Family Home Decision

New Jersey courts weigh several factors when determining what happens to the family home in divorce proceedings, including:

• Child Custody Arrangements: If one parent is awarded primary custody, he or she may be more likely to retain the family home to ensure continuity for the children.

• Financial Situation of Each Spouse: Courts will consider each spouse's ability to pay for the mortgage, taxes, and upkeep. The spouse retaining the home typically needs to prove the financial ability to maintain it.

• Length of the Marriage and Contributions: Contributions—both financial and non-financial—toward the home may play a role, especially if one spouse invested significantly in renovations or mortgage payments.

• Emotional Attachment and Personal Preferences: While practical factors dominate, emotional attachment, especially when involving children, is considered to some extent.

Pitfalls to Watch For

Even with clear options, some common issues can complicate the decision over the family home:

• Mortgage Qualification: If one spouse intends to keep the home, they may need to refinance the mortgage in their name, which can be challenging depending on credit and income levels.

• Hidden Costs of Retaining the Home: Keeping the home may come with unexpected costs like repairs, taxes, and maintenance. Financial planning for these costs is essential.

• Future Market Risks: If the housing market fluctuates, the home's value may change, affecting the timing of a sale or buyout agreement.

Making the Right Choice for You

Ultimately, the decision about the family home should be based on your long-term goals, financial stability, and the best interests of any children involved. Consulting with a knowledgeable divorce attorney can help you evaluate your options and negotiate an arrangement that protects your rights and financial future.

Contact Our Maywood, NJ Property Division Lawyers

At Marotta Tuchman & Blazini, LLC, we understand that the decision regarding the family home can be challenging. Our experienced team can help you explore all options and make a well-informed choice that suits your family's needs. If you're facing divorce in New Jersey and need guidance on equitable distribution, contact us at (201) 368-7713 to schedule a consultation.