Photo of Greco Law attorneys in office conference room

2 major stumbling blocks for dividing real property during divorce

On Behalf of | Aug 16, 2023 | Divorce |

Couples with valuable assets often have a harder time preparing for divorce than those who have acquired minimal property throughout their marriages. Spouses usually need to share their marital property unless they signed an agreement with one another setting certain standards for property division before they tied the knot.

High-asset couples may have businesses, investments and real property to divide. Real property, including a marital home, investment properties, vacation homes and even rental properties can be a layered source of contention during an Ohio divorce. For example, the two issues below can complicate the process of addressing real property during an Ohio divorce.

Choosing who retains occupancy

For some couples, the decision about who stays in the marital home will be a hotly contested matter. Both spouses may want to stay at the home because of its proximity to their place of employment or because they believe that staying in the home will influence custody matters. Spouses may disagree intensely with each other about who should stay in the home or if either spouse should stay there at all. Sometimes, spouses reach the decision that selling the property is the best solution. When couples can’t agree on occupancy, they may end up in court to resolve the matter.

Setting the value of the home

Those filing for divorce usually can’t continue living at the same property as their spouse indefinitely, so they will receive a portion of its equity instead. Figuring out how to split home equity requires that divorce in couples first determine how much the property is worth and how much they still owe on any mortgages attached to the property. Oftentimes, the process may require an appraisal, as home values tend to increase over time. The amount offered for the home at the time of purchase or even the assessed value used to calculate property taxes could be far lower than what the property is potentially worth on the modern real estate market.

High-asset couples often find that addressing possession of the property and determining what a home is worth for the purposes of property division are the two biggest challenges that they face during their negotiations or litigation. Identifying the terms that could cause the most conflict during divorce negotiations may help people better advocate for themselves as they seek a fair settlement.