Selling Both Homes and Purchasing One Residence: How Could it Affect Divorce?

Spouses who own their own residences may wish to eventually sell both properties, pooling their resources together in order to purchase a more valuable home together. Sharing the costs of mortgage payments may be easier, and dual income may help spouses qualify for higher loans. However, while this may make sense from a financial point of view, it is important to consider the implications of a potential divorce in Atlanta.

The Benefits of Maintaining Separate Properties 

If both spouses own properties before marriage, they may wish to consider the benefits of maintaining these properties instead of selling them. Although selling both properties may certainly provide liquid funds to invest in a more valuable property, there are other options. For example, if both spouses maintain their separate properties and rent them out during the marriage, spouses can use this income to pay the monthly mortgage associated with a new home. Assuming spouses have enough to cover the down payment without selling their separate properties, renting their separate properties could be more advantageous in the event of a divorce, as it ensures that both spouses have access to shelter and their own place to live should the marriage end. Spouses may simply terminate the lease of the current tenants and move back into their respective residences.

Perhaps more importantly, separate property is not subject to equitable division in the event of a divorce. In other words, you do not have to divide your pre-marital property with your soon to be ex-spouse if you owned the property prior to your marriage. This may simplify potential divorce proceedings.

Tips for Buying Homes Together 

If you decide to buy a home with your spouse after becoming married, it is important to take a few basic steps. First of all, you may wish to make sure that both of you are on the title to the property.

Another general tip is to consider entering into a prenuptial agreement prior to the marriage. A prenuptial agreement is a contract that can detail how the marital home will be divided in the event of a divorce, and it may be especially useful if one spouse is planning to contribute more funds towards the home purchase. For example, one spouse might plan to contribute 75% of the down payment. Another spouse may also agree to pay 100% of the mortgage payments going forward upon the purchase of the marital home. In this situation, the spouse who contributes more to the property may include in a prenuptial agreement that they would receive a higher percentage of the equity accrued in the property in the event of a divorce. Speak with your divorce attorney in Georgia for more information about prenuptial agreements, real estate, and approaching marriage with two separate properties.

Find a Qualified, Experienced Divorce Lawyer in Georgia 

If you’ve been searching for a qualified, experienced Atlanta divorce lawyer, look no further than Kaye, Lembeck, Hitt & French. With our help, you can navigate complex real-estate-related issues both before and after your marriage. Book a consultation today to discuss the most appropriate course of legal action in more detail.

Sources: 

unicourt.github.io/cic-code-ga/transforms/ga/ocga/r83/gov.ga.ocga.title.19.html

simpleshowing.com/blog/four-essential-tips-for-newlyweds-about-to-buy-their-first-home