The family home is often one of the most significant assets that married couples own. It can also have sentimental value as well as being the place children are raised. Although Pennsylvania calls for division of marital property in a divorce, special considerations can make the family home harder to apportion.

Marital property in a divorce generally includes all assets and debts acquired by either spouse during the marriage. The family home is usually considered marital property if it was purchased during the marriage or if marital funds were used for mortgage payments, improvements or maintenance.

Pennsylvania follows the principle of equitable distribution. This does not necessarily mean that assets and debts are split 50/50. Rather, they are divided in a way that the court deems fair based on a number of factors. These include each spouse’s earnings, future needs, nonmarital assets, contributions to the marriage and custodial arrangements for minor children.

There are various possible approaches to dividing the family home. One is to sell the residence and split the net proceeds, leaving both parties with liquid assets they can use for new housing. This can be the most straightforward path, especially if neither spouse can afford to maintain the home independently.

Another approach is for one spouse to retain the home. That spouse must “buy out” the other by compensating them for their share of the home’s equity. This compensation can be by direct payment or by offsetting the value with other assets, such as retirement accounts, vehicles or investments. The property settlement agreement should detail how the buyout amount is calculated.

A third option is for the couple to agree that one spouse will remain in the home until the children reach a certain age or finish school, after which the residence may be sold and the proceeds divided.

A spouse who wishes to keep the home must keep in mind that this means assuming full responsibility for associated costs. These include ongoing mortgage payments, property taxes, homeowners insurance and regular maintenance and utility bills. In some cases, the court may order (or parties may agree) that both spouses share these expenses for a transition period, but ultimately, the spouse retaining the home will need to qualify for the mortgage on their own and refinance it solely in their name.

The disposition of the family home fits into the larger context of dividing all marital assets and liabilities. The goal is to achieve a fair overall result, not just with the home, but with the entire marital estate. A skilled Pennsylvania divorce attorney can assist you in working out a settlement agreement that best accounts for a value of the family home and arrives at a fair distribution.

Chan & Associates in Lancaster provides skillful, compassionate counsel to Pennsylvanians who are going through a divorce, advising on all related financial considerations. You can make an appointment to talk about the marriage dissolution process by calling 717-869-0015 or contact me online.