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When a renovation project becomes a divisible financial asset

There are a number of people in Philadelphia who will undergo some sort of renovation project this year, but many of them may not realize that renovation projects can be the straw that breaks the camel's back with a marriage. While not all people who undergo a home renovation will end up divorced, it is very possible that for already strained or weak relationships, a renovation can end a relationship once and for all.

Although it may seem to be a waste to go through a long home renovation just to turn around and treat the home as a financial asset, there can be some benefits, too. Ostensibly, if a family home goes through major changes, it will likely be worth more than it was prior to the renovation. Instead of getting, say, $400,000, a couple could get $450,000 if they chose to sell the home and divide the profits. If the cost of the renovation was less than $50,000, it may have been worth it.

Even if one spouse wants to keep the home, it allows for the other spouse to ask for more in the divorce settlement. He or she could argue that since the other spouse now has a more expensive home, he or she should be able to get a larger portion of the joint bank accounts or take a greater division of the other marital or financial assets.

Though there is no definitive cause and effect relationship between renovations and divorce, there are a number of people across the country who realize that, as the renovation project ends, so has their marriage.

Source: New York Observer, “Until Decorating Do Us Part: When Renovations End in Divorce,” Kim Velsey, March 12, 2014

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