Comedian and TV host Nick Cannon and singer Mariah Carey announced their divorce this past January, after rumors last summer that the two were not seeing eye to eye. The news has now broken that Carey sold the couple’s marital home, a mansion in California’s posh Bel-Air district, for a cool $9 million.
Both parties approve of the sale, however, Cannon has filed a lawsuit stating that he never signed off on the sale. Cannon believes that the couple’s business manager, Michael Kane, kept him out of the loop throughout the entire process of the sale. Now, he wants to know exactly how much of that $9 million he is entitled to.
How Do Divorcing Couples Decide What to Do with the Marital Home?
As we discussed last week, Colorado is an equitable division state. Marital property is doled out to each spouse depending on what the judge believes is fair to both parties. And often, the equity of the marital home is one of the biggest marital assets in a divorce. Equity consists of the market value of the house less any liabilities against the property, such as mortgages, taxes or home equity loans. Once an appraisal is made, the couple will generally have three choices:
- The spouses sell the home and divide the proceeds, like Carey and Cannon are doing.
- Either of the divorcing parties can refinance the home and “buy out” the other party.
- One of the spouses can remain in the home exclusively for a certain period of time (until the children turn 18, for example), then that party can either buy out the other spouse or sell the home and divide the money.
Asset division can be a complicated and stressful process. You can make it easier on yourself and your family by speaking to a skilled divorce attorney.
Divorce Matters ”“ Denver Family Law Attorneys