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How to divide your home value in New Jersey divorce

On Behalf of | May 24, 2022 | Divorce, High Asset Divorce

Splitting home value in a divorce can be a difficult process, especially if you are not familiar with the laws in New Jersey. Here’s a guide on the options you have when this time comes.

Valuing a home in New Jersey

Before you start looking at how you wish to divide your home, you need to know its equity. This is the market price of your home minus the mortgage and other debts that are still held against it. Usually, the court distributes this equity between the spouses before the split.

There are three ways to go about determining the value of your house:

  1. Working with a real estate agent: This is generally the least accurate method, but it can be a good starting point.
  2. Hiring an appraiser: This is the most reliable method because an appraiser is a professional that specializes in valuing homes.
  3. Determining the value yourself: You can find out how much your home is worth by looking up recent sales of similar homes in your area on websites like Realtor.com or Zillow.com.

How to divide a home value in New Jersey

You have three options:

  1. Sell the house and split the proceeds according to New Jersey divorce laws.
  2. If you have children, one spouse may keep the house temporarily; then, later, they can buy out the other’s interest in the property.
  3. You can also take over sole ownership of the property by exchanging it with another asset of equal value to your spouse’s share.

When it comes to selling the house and splitting the proceeds, the court will require you to retire all debts on the house, including the mortgage, pay taxes, and other sale-related expenses. The money that remains is the one you’ll split equitably.

Dividing your home’s value in a divorce can be a complex process, but it doesn’t have to be. With the right information and guidance, you can make sure that your home is divided fairly in a way that you get what you want.