The process involves one party in a dissolution of marriage agreement acquiring the other party’s ownership interest in a jointly held residential property. This typically requires determining the property’s fair market value, subtracting any outstanding mortgage balance or other liens, and then compensating the relinquishing party for their share of the resulting equity. For example, if a house is appraised at $500,000, has a remaining mortgage of $200,000, and is owned equally, the party retaining the property would need to provide $150,000 to the other spouse to finalize the transfer of ownership.
Electing to pursue this course of action can provide stability for children by allowing them to remain in the family home. It also offers the resident spouse the advantage of maintaining control over a familiar asset and neighborhood, avoiding the disruption of relocation. Historically, this arrangement was less common due to financial constraints, but evolving property ownership models and increasingly sophisticated divorce settlements have made it a more prevalent option for resolving marital property division. It offers a clean break for the departing spouse, freeing them from the responsibilities and liabilities associated with the property.
