If you divorce and have physical custody of you children, it is likely that you want to remain in the family home. This can help provide the children with the stability they need to process the divorce.
To stay in the family home following your divorce, you will need to be awarded the home in the property division process and you will likely have to buy out your spouse’s share in the residence.
Property division in Indiana
First, it is a good idea to have a basic understanding of Indiana property division laws. Indiana follows the doctrine of “equitable distribution.” This means that marital property is divided based on what would be fair to each spouse even if it means one spouse is awarded more marital assets than the other.
If you want to be awarded the family home in your divorce, you may need to exchange it for other assets of a similar value. Otherwise, you will need to buy out your spouse’s share in the home.
What is a buyout?
If you want to buy out your spouse’s interest in the home, first you need to ascertain the current market value of the home. Then you pay your spouse their 50% share of the value of the home and take on the entire mortgage on your own.
Many people need to refinance their mortgage to afford a buyout. Refinancing gives you the money needed to buyout your spouse’s share in the property.
Life after a buyout
Keep in mind that you are solely responsible for paying the mortgage once the buyout is complete. You will want to make sure you can afford to do so before pursuing a buyout.
Still, a buyout is a good way for you to continue raising your children in a familiar environment post-divorce. This can help everyone adjust to the new normal after your marital split.