What Happens to Jointly Owned Property After Divorce?

Divorce often raises complex questions about asset division, especially when couples own property together. In Georgia, jointly owned property must be divided according to state laws, financial circumstances, and the unique needs of both parties. At Hobson & Hobson, P.C., our Atlanta-based family law attorneys guide clients through this process with a balance of empathy and strategic advocacy.

How Georgia Law Handles Property Division

Georgia follows equitable distribution laws, meaning marital assets are divided fairly (but not necessarily equally) based on factors such as:

• Duration of the marriage
• Each spouse’s financial contributions
• Future earning potential
• Custody arrangements for minor children

Separate property (assets owned before marriage or inherited) typically remains with the original owner, while marital property (acquired during the marriage) is subject to division. Homes purchased jointly during the marriage are usually considered marital property.

Options for Handling a Jointly Owned Home

1. Selling the Property

Many couples choose to sell the home and split the proceeds. This clean break avoids ongoing financial ties but requires agreement on:

• Listing price
• Sale timeline
• Cost deductions (e.g., repairs, realtor fees)

2. Buyout Arrangements

One spouse may keep the house by buying out the other’s equity. This often requires refinancing the mortgage to remove the departing spouse’s name. For example:

• If the home is worth $500,000 with a $300,000 mortgage, the buying spouse might pay $100,000 (half of the $200,000 equity) to the other.

3. Co-Owning the Home After Divorce

Can you get divorced and still own a house together? Yes, but it’s rare. This arrangement works best if:

• Children’s stability is prioritized
• Both parties agree on maintenance costs
• A legal contract outlines responsibilities

Mortgages and Financial Considerations

Joint mortgages remain legally binding even after divorce. If one spouse keeps the house but defaults, both credit scores suffer. Refinancing is often necessary to protect both parties. Key steps include:

1. Qualifying for a new loan individually
2. Removing the ex-spouse from the deed via a quitclaim deed
3. Updating homeowners insurance

The Consumer Financial Protection Bureau recommends consulting a financial advisor to evaluate long-term affordability.

Tax Implications of Property Division

Divorce and home ownership decisions trigger tax consequences:

• Capital gains tax: Exemptions apply if the home was a primary residence for 2+ years.
• Mortgage interest deductions: Only the spouse paying the mortgage can claim this.
• Transfer taxes: May apply when changing deed ownership.

For detailed guidance, refer to IRS Publication 504.

The Role of Mediation in Property Disputes

At Hobson & Hobson, we prioritize mediation for resolving property disputes amicably. Mediation offers:

• Lower costs than litigation
• Customizable solutions
• Reduced emotional stress

In high-conflict cases, our attorneys leverage 30+ years of litigation experience to protect clients’ rights in court. We’ve successfully handled complex cases involving:

• High-value assets
• Business valuations
• Hidden financial accounts

For couples considering mediation, resources like Out-of-Court Solutions provide collaborative frameworks.

FAQ: Divorce and Joint Property Ownership

Can you keep a joint mortgage after divorce?

Yes, but both parties remain legally responsible for payments. Refinancing is strongly advised to prevent future liability.

What happens if we can’t agree on the house?

A judge will decide based on Georgia’s equitable distribution principles. Factors like childcare needs and financial stability weigh heavily.

Is co-owning a house after divorce a good idea?

It’s risky without a formal agreement. Most couples find it unsustainable long-term due to maintenance disputes or remarriage.

How is home equity calculated?

Subtract the remaining mortgage balance and sale-related costs from the home’s market value. An appraisal is often required.

Can a spouse force a home sale?

Yes, through a partition action. Courts typically approve sales if co-ownership becomes unworkable.

Protect Your Property Rights with Expert Guidance

Dividing jointly owned property requires careful analysis of financial, emotional, and legal factors. Hobson & Hobson, P.C. combines cutting-edge legal strategies with compassionate counsel to help clients navigate this process. Whether through mediation or litigation, we fight to secure outcomes that align with your family’s future.

Contact our Atlanta family law team for a personalized consultation. Let our 30+ years of experience in divorce and home ownership disputes work for you.