Homes quite often go to the spouse who ends up with custody of the children. Indeed, the courts almost always give special consideration to the parent who gets the kids: Keep the kids, keep the house. However, the spouse keeping the house may not be getting the fair end of the divorce settlement.

Few homeowners understand what the true value of the home is, even though the marital home generally accounts for 60% of a family's net worth. In addition, the Commonwealth of Massachusetts has no state-prescribed guidance for divorce real estate. Often, when the family house is not sold (i.e. interspousal transfer), the property valuation is not accurate. In most divorces, the spouses and/or an appraiser determine what the house is worth, and the one who gives up the property is usually given a credit of some sort for her or his half of the equity the couple has in the house. So if an appraiser says the house is worth $600,000 and the homeowners owe $400,000, the spouse moving out of the house gives up her/his claim to his $100,000 equity stake for, perhaps, $100,000 in stocks and bonds.

If a third party does evaluate the home, it is normally appraised by a professional who knows little about assessing the true condition of the home. Usually the homeowners themselves also have inadequate knowledge of a home's true value. For this reason, a home inspection by a licensed home inspector is highly recommended. A home inspector can evaluate the structure and systems of the home to determine its true condition. Once the homeowners have a detailed report of a home's defects, they can more accurately proceed with the divorce settlement. Both a home inspection and at least one title search should take place before the settlement agreement.

Filed under: Divorce, Legal Advice in Common Scenarios, Listing Presentation, VRN