A divorce between a couple, not only terminates the legal relationship between the couple, however, it also requires that the land and property that is shared by the spouses be divided. Upon Property settlement during divorce, the couple is asked to decide what they want to do with their property. The husband and wife may be holding the property jointly, or it may be in the name of one of the spouses.
When the property is held jointly
If the property is owned jointly by the spouse, then, it can be divided on behalf of individual equity. To fairly come at the individual stakes, you can get the property assessed, on the base of the market value of the property. Moreover, when a spouse is holding the title of the property jointly, they are needed to do the requisite paperwork and also transfer the property in the name of one person for the betterment of property settlement during divorce.
These are the following choices available if the property is held jointly by a couple:
- Sell the property: A couple can sell the property and share the profits based on individual equity. If there is an exceptional loan on the property, then, clear the loan and divide the proceeds as per your share on it.
- One spouse (either husband or wife) can retain the house: If one of the spouses plans to keep the house, then, he/she can buy out the other person’s share of the base of market value. Accordingly, changes should be implemented on paper and transfer the title of the property to one individual name.
- The home remains a joint property: A husband and wife may decide to hold on to the property, to reduce the tax implication or take benefit of appreciation in the property’s value. In this case, it is essential that you must define the liabilities and claims accurately, in the separation agreement regarding property settlement during divorce.
Dividing a property is a lot easier, in the case of a mutual divorce. In such situations, the spouse can decide together, as to how they want to dispose of the property.
When the title of the property in the husband name?
As per the current laws, a woman seeking divorce is not allowed to any share in the husband’s property. As per the current government, the ownership of the property holds with the person, who is possessing the title. For example, if the title of the property is in the name of the husband and both, the wife and the husband purchased it together, then, the wife will have to prove her claim, and the court will decide the same.
When the title of the property in the wife name before property settlement during divorce
On the other hand, when men purchase property with their money and register it in the names of their wives, to take the advantage of lower registration fees, in such situations, the wife can continue to maintain the ownership of the property.
Only when a person is able to prove in court that he has financed the property purchase, will he be authorised to a share in the property, even when the title may be in the name of the different person. In a smooth separation, one can do Property settlement during divorce through mutual consent, or based on individual contribution or ownership.