People preparing for divorce can make mistakes that affect their finances for years. It can be difficult to make rational decisions instead of letting emotions dictate conduct. It can be ever more challenging to make sense of all of the half-true stories and counterproductive pieces of advice people share.
Many well-meaning people give questionable advice to those preparing for divorce. Frequently, people warn spouses preparing for divorce that they should not leave the marital home. The claim is that moving out is effectively abandoning the marital home.
Some spouses remain trapped in unstable living situations just to protect their home equity during divorce proceedings. In reality, moving out during a divorce usually does not automatically equate to abandoning interest in one’s marital home.
Spouses still have an equity interest after leaving
Moving out of the marital home does not eliminate years of contributions toward the mortgage and the upkeep of the property. Divorcing spouses generally have an interest in shared assets even if they give up possession of those assets.
Under equitable distribution rules, each spouse should receive a fair portion of the marital estate. The marital estate typically includes home equity accumulated during the marriage. Each spouse should receive a fair portion of equity based on the overall situation.
One spouse can give up their possession or occupancy of the home while still asserting their interest in its overall value during divorce proceedings. Depending on family circumstances, continued maintenance or financial contributions may be necessary to avoid claims of abandonment.
Discussing property division and home equity concerns with an attorney can help spouses evaluate their options. Moving out is sometimes necessary for peace and safety, and it does not necessarily need to alter the property division process.
