Heading into a divorce with your soon-to-be ex-spouse? Wondering what will become of your numerous marital assets? Let’s find out!
People buy houses for a variety of reasons, but the primary reason most people buy a house is to start a family after marriage. Loans are applied for, ideal properties are scouted and chosen, and the family has a new place to call home in no time. Both spouses work together to buy and renovate their new home, and savings from both sides may be used for this purpose. What Happens To joint property after divorce
While this all paints a pretty picture, the reality may be quite different. Many people are disappointed that most families do not have a happy life after that, and some find their differences irreconcilable, resulting in divorce. Caught in their crossfire is the new home they had bought. But what happens to the house? and shared by Joint Property After Divorce.
Here’s a look at what happens to joint property after divorce.
Determining the Ownership of a Property
According to the law, a specific property belongs to the person under whose name it has been registered. It makes no difference who puts money into it, who is the primary contributor, or anything of the sort. Legally, whether or not the individual paid for the property then it shared by Joint Property After Divorce, the owner is whose name is on the property deed.
The Real-Life Scenario
To encourage women to own property, the government provides several incentives, including lower stamp duty at the time of registration. As a result, most properties are now registered in the names of women because it is less expensive. Similarly, banks offer women lower interest rates on loans, resulting in the majority of loans being taken out in the name of women even if the male is the one who pays it back every month And also joint property after divorce
Since legally, the house belongs to the registered owner, and the loan has to be repaid by the one in whose name it has been taken. At the time of divorce, the asset goes to the woman if her name is present in both places.
Determining Joint or Sole Ownership in a Divorce
- If a property is registered jointly, both the wife and the husband will have a claim on it at the time of divorce by using Joint Property After Divorce.
- No regard is given to the wife’s contribution to the purchase of the property; the court will grant her a rightful share nonetheless.
- If the property is registered in the wife’s name, she has a complete claim upon it, unless the husband can provide solid proof that he contributed to its purchase.
- Account statements and financial records can be used as proof, as they show the payment of mortgages and the payback of loans.
- A woman can use the same to prove she contributed if the husband is the sole owner as per the registration.
- If a joint property After Divorce was bought by a couple who both have taken out loans in their names, a thorough study of contributions is made, and the court of law divides the asset based on their share of the purchase price. Also, both spouses would be liable to pay the loan back in this scenario.
- This is because all co-borrowers have a responsibility to repay the loan. In situations of Joint Property After divorce, the financial institution provides no waiver, and so every co-borrower is liable to make the repayment on time.
- If the property is registered in the husband’s name and he is the one who contributed to buying it by applying for loans, then the woman has no stake in the property and will get no share of it.
- If the wife made an upfront payment towards it, then the husband will be asked to treat this as a loan and pay it back with interest.
- A man’s ancestral property which he is to inherit will also be out of reach of the woman in case of a divorce.
- In divorce cases, the court requires that houses mortgaged to a financial institution be dealt with effectively. To settle the outstanding balance:
- The couple can sell the home, pay off the debt, and then split the remaining money.
- One of the spouses could take ownership by repaying the contribution of the other. The new owner is then liable to repay the mortgage and clear the other’s name from the loan account after it has been cross-checked by the financial institution.
Buying a home involves a whole lot of paperwork and induces a lot of financial stress, so most couples prefer to do it together. While this appears to be a good idea in general, things can go wrong, if the couple chooses to get a divorce. Moreover, Joint Property After Divorce issues frequently derail the chances of an amicable divorce.
This is why couples must understand how to organise their assets in order to avoid future problems as the number of divorce cases rises rapidly every year. To get help sorting out your marital assets and to ensure that both parties are protected get help from the property registration experts at Vakilsearch.
Read More :
- How to File a Divorce Petition In India?
- How to Take Divorce?
- Divorce In India If Marriage Is Not Registered
- Alimony Agreements in Your Divorce