In a legal dissolution of marriage in Ohio, few assets carry as much weight—financially or emotionally—as the marital home. It’s not just a structure with walls and a roof; for many couples, it represents years of shared life, financial investment, and family memories. When a marriage ends through dissolution, deciding what happens to the house can be one of the hardest parts of the process.
Unlike a contested divorce, a dissolution requires both spouses to reach a mutual agreement on every major issue, including what to do with the home. This means both people must be on the same page—whether they want to sell, transfer, or share ownership—before a court will approve the separation agreement.
Let’s break down your options, what factors to consider, and how your decisions are formalized during the dissolution process in Ohio.
Options for Handling the Marital Home
There are several ways couples can deal with their house during a dissolution in Ohio, depending on their finances, needs, and long-term plans.
Selling the Home and Splitting the Proceeds: One of the most straightforward options is to put the house on the market and divide the profits. This option can provide a clean break for both spouses and avoids the need for one person to take on the full mortgage or buy out the other’s interest. However, selling can take time, and market conditions may affect how much the couple gets to walk away with.
One Spouse Buys Out the Other: In many cases, one spouse wishes to remain in the home—perhaps for the sake of the children or because they are financially better positioned to take it over. In that case, the person staying will typically refinance the mortgage in their own name and compensate the other spouse for their share of the equity. This option requires agreement on the value of the home and the portion each person owns, which may require a formal appraisal.
Temporary Co-Ownership (Rare): Though uncommon, some couples agree to continue owning the home together for a short time after dissolution. This may happen when the kids are finishing a school year, or if the market is unfavorable for selling. Temporary co-ownership requires clear, enforceable terms about who lives there, who pays what, and when the situation will end. This can be risky without strong cooperation and legal guidance.
Factors to Consider When Deciding
The decision about the house shouldn’t be made lightly. A number of practical and emotional factors come into play:
Children’s Schooling and Stability: For families with school-aged children, keeping them in the same school district and home environment is often a top priority. This can influence whether one parent stays in the home temporarily or longer term. The court won’t intervene in dissolution matters unless there’s disagreement, but the well-being of children should still be a guiding principle.
Financial Ability to Maintain the Home: Can either spouse reasonably afford the mortgage, taxes, insurance, and upkeep of the home on their own? Emotional attachment aside, it’s critical to evaluate whether keeping the house makes financial sense. Taking on a mortgage solo can be a major burden, especially if your income will change post-dissolution.
Mortgage Responsibility and Refinancing: Even if the separation agreement says one spouse gets the house, that doesn’t automatically remove the other’s name from the mortgage. The lender must approve any refinancing, which depends on credit and income. If refinancing isn’t possible, both names may remain on the mortgage, even if one person no longer lives there. This can lead to future complications, so it’s best to plan carefully.
How It’s Documented in the Separation Agreement
When spouses reach a decision on the home, that decision is included in the separation agreement—a legal document that spells out who gets what in the dissolution.
Clear Provisions on Who Gets What: The agreement should clearly state who retains ownership of the home, or if it will be sold. If one spouse is keeping the home, it should include details about refinancing, payment of equity to the other spouse, and the timeline for completing these steps. Without clear terms, enforcement can become difficult down the road.
Addressing Equity, Liens, and Taxes: Equity in the home is typically considered marital property and split accordingly. If there are liens or second mortgages, those must be disclosed and addressed. Tax consequences from selling the home, such as capital gains, should also be discussed and included in the agreement, especially if a sale is planned soon after the dissolution.
FAQ
Do both spouses need to be on the mortgage to divide the home?
Not necessarily. One spouse can be awarded the house even if both names are on the mortgage. However, unless the mortgage is refinanced into one person’s name, both spouses remain financially responsible for it in the eyes of the lender.
Can the house be awarded to just one person?
Yes, as long as both parties agree. In a dissolution, the court won’t force a property settlement—it only approves the terms the spouses mutually accept. One person can retain the house, provided the agreement specifies how equity will be handled and how the other person’s name will be removed from title and mortgage (if applicable).
What happens if we can’t agree on what to do with the home?
If you can’t agree on the fate of the house, then dissolution may no longer be the right option. You would need to file for divorce instead, and a judge would then make the final decision about property division under Ohio law. Dissolution depends entirely on mutual agreement; once negotiations break down, court intervention becomes necessary.
Final Thoughts: Don’t Decide Alone
Your home is more than just a major asset—it’s a part of your life story. Deciding what happens to it during a dissolution is both a legal and emotional decision, and it’s one that requires careful planning.
At Garretson & Holcomb, LLC, we’ve helped families across West Chester Township and beyond protect their interests during dissolution. We can work with you to create a separation agreement that reflects your goals while ensuring the process remains smooth and legally sound. We also recommend involving a real estate professional when needed, especially if a sale, refinance, or appraisal is on the table.
If you’re considering dissolution and have questions about what to do with your home, give us a call at (513) 863-6600. We’re here to help you move forward with clarity and peace of mind.
