Splitting assets during a divorce can be difficult. Many Ohio couples are tasked with deciding whether to keep or sell their Hamilton house. Factors that you’ll have to take into account when trying to decide what to do with it is how long you’ve owned the home, how much equity it has built up in it and what the annual property taxes on it are.
Maintaining a home can be very expensive. The cost to remain in the home will fall on your shoulders unless you and your ex work out some alternative arrangements. As a homeowner, you’ll have to make the mortgage payments, pay the insurance, taxes and utility costs while also covering any repairs that the home may need.
If the mortgage was in your ex’s name, then you may find yourself having to refinance it. This could be difficult for you to do based on the amount that’s left on the note, the mortgage rates and your credit score.
You may be living in a larger home to accommodate your family or a more expensive area because you were splitting the cost with your spouse. You may have also moved into your neighborhood because it was closer to you or your ex’s job. You may find it undesirable to remain in such a large home if you’re going to living there alone the majority of the time.
There are tax implications to consider when you’re trying to decide what to do with your marital home. If you’ve lived in the property for at least two out of the last five years, then you may be able to exclude up to $250,000 in profits as a single filer and up to $500,000 as a joint one. The tax-free amount that you can pocket from the sale is significantly reduced if you’ve lived in the home for less than two years.
There are a lot of factors that you have to consider when you split up marital assets as part of your divorce. An attorney can send a message to your ex that not everything is up for grabs. Your lawyer can also advise you how taxes, budgets, credit and profits are all factors that can affect your decision-making as to what to do with your Ohio marital home.