Inaccurate information about divorce can lead to people feeling anxious and trapped. Well-intentioned people sometimes share faulty information with those considering divorce. For example, many people caution friends and family members against moving out of the marital home. They claim that leaving the property constitutes abandonment and eliminates the spouse’s interest in any accrued home equity.
Given that homes are often the most valuable shared asset spouses have, they likely want to protect their equity, even if it means staying in a miserable living arrangement. The truth is that leaving the home does not eliminate an interest in home equity.
Spouses share assets
Under equitable distribution rules, spouses typically need to find fair ways to divide their property and their financial obligations. They start the property division process by establishing a list of their joint assets and financial obligations.
Then, they negotiate with one another to decide how to allocate their assets and debts. In some cases, they may have to litigate to resolve their disagreements about their property.
Simply leaving the house does not eliminate one spouse’s interest in the property. After all, that equity is the result of years of making payments and contributing to the upkeep of the home.
While moving out can make it more difficult to regain possession of the property later, spouses can still request a fair share of home equity or other marital property worth a comparable amount. When people understand the basic rules that apply to equitable distribution proceedings, they can choose better solutions throughout the divorce process.
Preparing for the challenges of splitting high-value property can be beneficial for those on the cusp of divorce. Having experienced legal guidance is important to making good choices about how to file and what steps to take after filing.
