In Wisconsin, both assets and debts are shared equally when dividing property. As is always the case with dividing property, the procedure is made considerably easier if both parties can come to an agreement. However, the courts will distribute the property as fairly as they can if the parties cannot agree. Because most people prefer to make their own decisions, most cases never reach the point when the court makes a ruling, so you must get help from a divorce attorney Milwaukee.
Putting the Marital Home First
It is never easy to decide whether the house will be sold and divided, kept and bought out, or shared and preserved. The marital home is frequently the greatest asset shared by both parties considered during a divorce, so decisions involving the home are serious matters.
The three primary possibilities for partitioning the marital house are listed below:
- Sell your home
- Accept a Buyout
- Co-Own the House.
Sell your Home
They can sell the house and divide the proceeds if neither partner wants it or can afford it on their own. Consider the financial and emotional repercussions when deciding whether to sell your home. Personal relates to persons who lived there, whether children or adults, and their sentimental value on the home. Financial relates to things like the mortgage and the realtor. The marriage settlement agreement should specify who sells the house and how any proceeds are to be divided.
Accept the Buyout
In a buyout or exchange, one party retains ownership of the property, buys out the other party, and refinances the house solely in their name. When there are a lot of other assets in the marital estate, a buyout is a fantastic alternative. The party keeping the house may swap marital assets for the other party’s portion of the equity when sufficient marital assets offset the home’s equity.
This choice has drawbacks on both sides, as the buyer might overpay if the house loses value, or the seller might miss out on potential future gains in the asset’s value.
Jointly Own the House
- Continued co-ownership of the property is the last and least popular choice. As previously indicated, this happens most frequently when an overtime buyout is being paid. Co-ownership is uncommon since it has clear financial drawbacks:
- Both parties must report the mortgage as an open item on their credit reports, which may make it harder to finance additional transactions.
- Upkeep Costs – Tracking and allocating upkeep costs is a source of contention for both parties.
- Taxes – Even if both partners are responsible for paying the mortgage, only one is eligible to deduct the interest from their taxes.