Divorce can be a complicated process, particularly in Rhode Island. As couples navigate the emotional and logistical challenges of separating their lives, they must consider how to handle their most significant shared asset: the family home.
This blog explores five effective strategies to help you keep your home during a divorce in Rhode Island.
Understand Property Classification
In Rhode Island, property classification plays a crucial role during divorce proceedings. The state distinguishes between marital and separate property. Marital property includes all assets acquired during the marriage, while separate property encompasses assets one spouse owned before the marriage, received as a gift, or inherited.
Here are some scenarios that can affect how a court views the family home:
- If you and your spouse purchased the home together during the marriage, it qualifies as marital property. This is true even if only one spouse made payments or there is only one name on the lease
- If one spouse owned the property before marriage, that spouse could argue that it is separate property. However, if the other spouse made significant contributions to the home, they could argue that it is co-mingled property. In that case, determining ownership will be more difficult.
In RI, courts follow the principle of equitable distribution, which means they divide marital property fairly but not necessarily equally. Therefore, a court can give the home to the spouse it believes is most deserving, even if that spouse made no financial contributions to the home.
Document Financial Contributions
When determining who is most deserving of the home, the court can consider several factors. It has the power to disregard financial contributions, but it could also consider them.
Keeping detailed records of your financial contributions to the home could increase your chances of retaining ownership. Track your mortgage payments, renovations, and any maintenance expenses, even if you are not the spouse who makes the primary payments. These documents become vital during settlement discussions. Both spouses can contribute to the home emotionally and financially, and they must demonstrate their involvement in financial decisions throughout the marriage.
Evidence that shows your contribution could include:
- Receipts
- Bank statements
- Payment records
If you handled renovations, keep before-and-after photos along with invoices from contractors. This documentation can strengthen your position if your spouse disputes ownership or if the question arises of who contributed more towards the home.
Negotiate Fairly
Negotiation is an essential part of divorce proceedings. Ideally, couples should aim to reach equitable agreements regarding asset division, including the family home.
When negotiating, always strive for open communication. Doing so generally fosters better negotiation outcomes. Avoid letting emotions drive discussions. Also, consider both party’s needs to fairly determine who will retain the family home.
Mediation can play a significant role in these discussions. In this process, a neutral third party can help you and your spouse focus on solutions rather than disagreements. Mediation promotes collaborative problem-solving and often leads to win-win solutions. It allows you to explore creative options, like one spouse keeping the home while the other receives a larger share of other marital assets or equitable payments over time.
The best part of mediation is that you make the final decisions together. Neither spouse is forced to follow a judge’s decisions, whether they are fair or not.
Explore Buyout Options
If you want to keep the family home, consider proposing a buyout agreement. A buyout involves one spouse purchasing the other spouse's share of the home. This arrangement allows the person who wants to keep the home to compensate the other spouse for their equity in the property.
Before proposing a buyout, assess the home's value. Hire a licensed appraiser to determine its current market value. Based on the appraisal, calculate how much equity each spouse holds in the home. If you propose to buy out your spouse, ensure you have a clear plan to fund the buyout.
You might consider refinancing the mortgage in your name only. This step allows you to pay your spouse their share of the home equity while removing their name from the loan. Be cautious about your financial stability, and consult with a financial advisor if necessary.
Argue for Entitlement
In some cases, you may need to assert your entitlement to the family home during divorce negotiations. Doing so involves presenting evidence demonstrating your contributions and emotional ties to the property.
For instance, the primary childcare giver can highlight their role, demonstrating their contribution to the home. They could even argue that if they get primary custody, they will need the home to help raise the children.
When making an entitlement argument, gather documentation that supports your claim, such as:
- Records of payments made towards the mortgage or home improvements,
- Documents showing involvement in the home, such as managing its upkeep or making significant renovations
A strong presentation of your entitlements can persuade your spouse and the court that allowing you to keep the home is beneficial for all parties involved.
Seeking Legal Guidance
Consulting with a lawyer can help you understand your rights regarding the family home. An experienced attorney can provide insight into divorce laws, particularly regarding property classification and equitable distribution.
Find a qualified lawyer with experience in property disputes. Prepare a list of questions before your consultation. These questions should cover property division, potential outcomes, and considerations during negotiations. A knowledgeable attorney can help you develop a strategic plan for retaining your home and provide support throughout the divorce process.
If you are concerned about losing your home in a divorce, contact McIntyre Tate LLP for help. You can call our office at (401) 351-7700 or fill out our online contact form.