Home Expenses After Separation
There are no specific laws that govern who pays home expenses after separation and before a court order or separation agreement is in place. The resolution of this issue depends on several factors, including each spouse’s income, debt, support obligations, and who is living in the home.
Helpful Principles for Paying Home Expenses After Separation
1
Utilities and Insurance
If you are living in the home and your spouse has moved out, you are generally responsible for paying the utilities and home insurance.
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2
Sharing Costs When Both Spouses Live in the Home
If both of you are still living in the home, you can either equally share utility costs or divide them based on your respective incomes.
If one spouse is paying a larger share of debts, you may decide to split utility costs unequally to balance expenses.
3
Mortgage Payments
Mortgage payments are different from utilities because they protect the value of an asset.
Mortgage costs should be shared even if only one spouse remains in the home.
4
Occupation Rent
Occupation rent is money paid by the spouse who stays in the home to the one who has moved out.
Generally, occupation rent equals the fair market rental value of the home, minus 50% (assuming joint ownership).
Often, mortgage payments made by the spouse in the home offset the obligation to pay occupation rent.
Our lawyers can advise whether occupation rent applies in your situation.
5
Home Expenses Instead of Support
Sometimes, the cost of maintaining the home (utilities, mortgage, insurance, minor maintenance) is considered part of support arrangements until the home is sold.
6
Major Maintenance or Renovations
If you plan to keep the home, do not invest in major renovations or repairs until you have a formal separation agreement confirming ownership.
7
Preparing the Home for Sale
If you jointly own the home and plan to sell it, both spouses benefit equally from the sale.
Costs to prepare the home for sale should be shared equally.
8
Track Your Expenses
Keep clear records of what you pay toward household expenses after separation to ensure everything can be fairly resolved later.
9
Consider the Collaborative Process
Family Court judges are limited in how they can divide financial responsibilities.
Using the Collaborative Process gives you and your spouse the flexibility to create a customized, practical arrangement for paying home expenses after separation.