Wednesday, October 15, 2014

How do we divide the family residence?

My wife and I own a house together, it didn't have equity when we separated, but there is equity now. Who is entitled to it? Do I get credit for any house payments I have made since we separated?

Community assets are generally valued at time of trial. If the home had no equity on date of separation, but does have equity now, that equity would be divided equally. If you are living in the house and making the payments, you are not entitled to any type of reimbursement. The money you pay in mortgage payments is the equivalent to you paying rent. When one party leaves the home, the other parent steps into the shoes of a renter and is solely responsible for making those house payments. Hen the property is divided, each party gets half of that equity, even though only one party was maintaining the property.