The fate of the family home often becomes a central concern in divorce. Traditionally, couples choose between selling or having one partner buy out the other.
Many couples choose to keep their shared home after divorce for financial reasons or to provide stability for their children. While this arrangement can work in certain situations, it also has potential risks and complications.
Viable solution under certain circumstances
In some cases, co-owning a home after divorce may be feasible, particularly if you have minor children and a significant emotional attachment to the property. However, you will need to consider the following factors:
- Joint ownership: Ex-spouses can continue to co-own the home as joint tenants or tenants in common.
- Deed restrictions: The divorce agreement or court order may include restrictions on the sale or transfer of the property.
- Mortgage obligations: Both parties may be responsible for the mortgage payments, even if one spouse no longer lives in the home.
- Property maintenance: Co-owners are responsible for maintaining the property.
- Tax implications: Co-owning a home can affect tax deductions, capital gains and other tax-related issues.
Hawaii is an equitable distribution state. This means the court divides property based on each spouse’s financial situation, earning capacity and contributions to the marriage.
Your co-ownership agreement should align with these principles to ensure it holds up in court if challenged. Courts often only order co-ownership if both spouses agree.
Careful consideration and planning are crucial
Aside from the legal and financial implications, co-ownership also involves dealing with emotional issues. If you and your ex-spouse are no longer on amicable terms, how can you maintain the high level of cooperation and communication that such arrangements often require?
As you weigh your options, think about your long-term goals, financial situation and how it will impact your children. When in doubt, it is always wise to seek professional advice on this important decision.
