Jointly-Owned Property: Points to Consider While Parting Ways

Getting married to the person of your choice is a picture-perfect beginning to a new life and thus you feel wishful about many things. The one thing that tops the chart of happy married life is to own a home alias a residential property. But, the life is full of uncertainties and thus some couples decide to part ways as things begin to go haywire and thus a legal process to divorce lead to custody of children and then come to owning a property. So, here are the key things you must remember about sharing property when filing for a divorce.

Jointly-Owned Property

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1. In Case of Jointly-Owned Property

Firstly, the property owned by the couple jointly is valued according to the current market rate and then the dividation of the same takes place. This segregation of property also depends upon the couple’s financial condition separately as a man and woman. After the completion of property valuation, the couple is required to complete the paperwork for the transfer of property titles in the name of the respective person.

Apart from this, there are three more conditions which can also be applied for dividing Property among the separating couple. All of them are mentioned below:

a. Selling of the Property:

The couple can also sell the assets after which they must pay-off the complete home loan or any other outstanding loan they have. After which both the person can share the remaining amount equally with respect to each other.

b. One Partner can Retain Property:

This is also a good option as one of the spouses can retain the entire property if he/she buys the other partner’s share according to the property priced in the market. This is an ideal situation as people always prefer to have the custody of their property.

c. Let the house be a Joint Property:

In order to avail tax benefits, a couple can also come to the terms of owning a property jointly even after getting legally separated. In this case, the couple has to declare property’s market value, liabilities and claims accordingly in the divorce agreement.

2. In Case the Property is Owned by Husband

According to the law, a woman seeking separation is not eligible for any share in the property owned by her husband. The rules suggest that, the ownership of a residential property remains with the husband in case he holds the property title. In case, the property is jointly owned, then the Wife has to prove her investment in the same to acquire her share in the property after which the Hon’ble Court passes a judgment.

3. In Case the Property is Owned by Wife

Similarly, if a husband invested in the purchase of a property but the property title is registered on the name of his wife as many people do in order to save money on the registration fee and to avail various tax benefits then the wife has the right to retain the ownership of property.

On a whole, both husband and wife can only win the legal battle to own the property while separating is by proving his/her investment in the purchase of a property. The investment evidence will make both the spouses eligible to retain the property irrespective of the fact that the property is registered on other partner’s name. These things have to be considered when fighting a legal battle for divorce. In case of mutual consent for separation, these things are easier to handle.