In Alaska, there are a few options to consider when it comes to keeping the marital home in a divorce, even if no enforceable prenuptial agreement exists between the parties.

 

One spouse can buy out the other spouse's share of the home by paying them their fair share of the equity. This arrangement works best when one party wishes to keep the marital home as their dwelling or investment property.  

 

First, the parties establish the fair market value of the marital home. This can be accomplished by hiring a real estate agent to provide a comparative market analysis, which uses recent sale prices for comparable properties to determine the current market value of the marital home.

 

Next, the parties calculate their equity in the marital home.  The amount of equity equals the fair market value of the home, minus the outstanding mortgage balance.  For example, if the home is valued at $300,000 and the mortgage balance is $200,000, then the equity is $100,000.  

 

After determining how much home equity is an asset of the marriage, the party who wishes to buy out the other one should negotiate a fair buyout amount. This buyout amount may be affected by how many assets are in the marital estate, and what other assets the other party is getting: Alaska courts presume that a fifty-fifty split in marital assets is equitable.

 

The buying spouse may need to secure financing to pay for the buyout. This can be accomplished through refinancing the mortgage in their name alone, which can provide funds to pay the other spouse; or through a Home Equity Line of Credit (HELOC), which can provide additional funds necessary for the buyout.

 

To formalize the buyout, it's crucial to have proper legal documentation, including a sale agreement outlining the terms of the buyout, as well as a quitclaim deed transferring their interest in the property to the buying spouse officially.

 

Throughout this process, it's advisable to consult with legal and financial professionals.  An attorney can help navigate the legal aspects of the buyout, and a financial advisor can offer guidance on the financial implications of the transaction.

 

 

If neither spouse wants to keep the home, they can agree to sell it and divide the proceeds in an equitable manner. This option may be necessary if the spouses cannot reach an agreement on the home's ownership.

 

It's important to consult with a knowledgeable divorce attorney to understand the specific laws and options available in your situation. Shortell Law LLC can provide guidance based on your unique circumstances.  To work with us, call (907)272-8181 today.