Divorce is still alive and well in the state of Kentucky. Depending on where you live, you may face a higher risk of divorcing. Recent statistics have shown that Lebanon, Leitchfield and Hazard have the highest divorced populations in the entire state.
When your marriage heads toward divorce, you will undoubtedly have a lot of questions. One of the biggest concerns people have is how they will divide the family home. Many married couples end up purchasing a house in Kentucky, and one or both spouses want to keep it. Here are a few ways a court may decide to divide the property.
Sell and split the profit
Many couples find it easiest to simply split the house. Neither party wants to live there anymore, so they sell and divide the profits. You may not even have to pay any federal tax on the sale of your home as long as the profit does not exceed $250,000. Additionally, your home had to have been your primary residence for at least two years, and you cannot have used the home-sale profit exclusion within the last two years.
Buy out the other spouse’s share of the home
If one spouse wants to stay in the house, it is possible to do so. However, the other spouse will still want to retain his or her share of the property. Should one spouse be able to acquire the money to do so, it may be advantageous to buy out the other. To do this, you will need to determine the value of the house and provide your ex with sufficient money.
Keep the house and sell later
When a couple has children, they often want to maintain stability for them. As a result, the spouse with primary custody keeps the home for the time being while the other moves out. The spouses agree to sell the property once the kids are out of the house.