If you’re divorcing and want to divide your assets, you’re going to have to consider that North Dakota is not a community property state. That means that you are expected to divide your assets in a fair way, but it’s not necessarily going to be equal. As an equitable distribution state, you may find that it’s more difficult to divide your assets, because there is no guarantee that you will receive half of the value of your marital estate.
If your home is part of your marital property, it may be one of the largest assets you have and one you’re concerned about dividing. Fortunately, there are different ways to separate this shared property.
- Separate your home by selling it
One of the easiest things to do is to sell your home and split to profits. If you and your spouse have decided to split your assets evenly, then this may work well in your favor. If you have another kind of split, such as a 60-40 split, then having cash may also make that split easier.
- Keep the home and rent it out
Another thing that some divorcing couples do is keep the property and rent it. Then, they share in the income from the rental property, just as they share the debt. Why do this? If the property is in an area where the values will continue to grow, then renting the property for a few years could eventually mean that you can sell for more and get more out of this asset.
- Buy out your spouse’s share
A third option that some divorcing couples use is a buyout. If you would like to keep the home and your spouse isn’t particularly invested in staying there, you may be able to take over the mortgage and buy out their share.
There are many ways to divide property during a divorce. What is most important is that you and your spouse are able to decide if you want to negotiate or work together to resolve these issues. If so, it may be easier on you (and more cost effective).