It is something of an understatement to say that divorce is a life-altering event. The reality is that divorce proceedings – as well as the lead-up and aftermath to a New Jersey marriage dissolution proceeding – has the potential to upend your life.
Time and again, one of the most significant decisions couples face during a New Jersey divorce is what to do with the marital residence. In New Jersey, where real estate values and living costs can be high, deciding whether to keep or sell the family home is a critical consideration. With this in mind, when it comes to the family resident, you must think strategically. Towards this end, we offer seven notable reasons why keeping the family home may make strategic sense for you in your case:
A paramount consideration when it comes to the family home in cases involving children is stability for those kids. Stability is a key consideration when it comes to furthering the best interests of the children when a marriage is coming to an end. Strategically speaking, keeping the marital residence advances the best interests of the children in a number of ways:
For most people involved in dismantling their wedded life, the marital home represents more than just a physical structure. The family home holds cherished memories and profound emotional significance. The reality is that the idea of selling the home can feel like losing a part of their identity or history. Thinking strategically, keeping the family home allows one or both spouses to preserve those memories and maintain a connection to a swath of their lives. This emotional comfort can be especially important during the challenging transition of divorce as well as if children are involved in the process.
Real estate in New Jersey is often a valuable asset. A marital home may represent a significant portion of a divorcing couple’s assets. Indeed, it is likely to be their largest asset. Selling the home in a down market or during unfavorable economic conditions could result in a financial loss. By retaining the property, one spouse can continue to benefit from potential appreciation in value over time.
In most instances, selling real estate can be a time-consuming and stressful process. This reality generally is magnified during a divorce and when the real estate at issue is the family home. Elements of this complicated endeavor include:
All of this can be avoided – at least for the time being (during the divorce) by keeping the marital home.
New Jersey is known for its proximity to major cities like New York and Philadelphia. A particular family home may have other pluses associated with its location, including such factors as excellent schools, parks, and different types of desirable amenities. Keeping the home works to ensure that the spouse who remains can continue to enjoy the benefits of the location.
Homeownership can come with tax advantages. By maintaining the marital residence, one spouse can continue to access potential tax benefits, which can significantly reduce their overall tax burden. Additionally, if the home is sold, capital gains taxes may be an issue.
Finally, in some New Jersey divorce cases, keeping the marital residence can be used as a bargaining chip during settlement negotiations. A basic tenant of settlement negotiations is that you always want to start with the strongest hand possible.
For example, one spouse may agree to relinquish their claim to the house in exchange for other assets, such as retirement accounts or investments. This can be a strategic way to achieve a fair and balanced settlement while ensuring that one party retains the home. These types of complicated negotiations are best undertaken by a skilled, seasoned New Jersey divorce lawyer. If you have questions concerning going through a divorce, call the law Offices of Peter Van Aulen at (201) 845-7400 for a free consultation.