Some divorcing spouses decide that they want a fresh start. Moving out of the marital home during or after the divorce, depending on the circumstances, can allow people to rebuild their lives in a new environment.
Equitable distribution rules generally allow them to secure a portion of the home’s equity in the divorce process. While they may not remain in the home, they have a right to a fair interest in the home’s accrued equity.
How can those moving out and moving on make arrangements for fair compensation?
Signing a deed is part of the process
In some cases, spouses may have settled their own property division matters. Other times, a judge may have ruled on their case and awarded possession of the home to one spouse and an equitable share of the marital estate, possibly including some home equity, to the other.
Once there is a final property division order in place, the party leaving the house typically signs a quit claim deed or similar deed releasing their interest in the marital home. The removal of their name from title records allows the spouse remaining in the home to refinance in their own name.
During that process, they may withdraw equity to compensate the leaving spouse. Other times, compensation for lost equity could come from other marital assets, such as investment resources or retirement savings accounts.
Those intending to give up possession of the marital home or ordered to do so may need help protecting their interests. Having the right support during complex property division proceedings can help people facilitate a smoother process while simultaneously protecting their best interests.
