Can You Trade the House for Child Support?

Generally in a Bucks County divorce, if one spouse wants to keep the house, that spouse pays the other spouse the value of the asset. When that spouse (for the sake of this article we will say the wife) does not have sufficient funds or the ability to secure a loan for the amount needed, the couple may look for a trade of comparable value. For instance, the husband might get to keep the boat and lake house in exchange for his portion of equity in the marital home. This can be an excellent way to maintain full ownership of the house by one spouse, usually the parent who will have full custody of the children. As Pennsylvania divorce mediators, we work hard to help divorcing couples come to these kinds of equitable arrangements that leave both spouses satisfied.

One strategy we don’t recommend, however, is trading the house for child support. As with an upfront lump cash payment, trading assets of any kind to get out of paying monthly child support can come back to bite you. In fact, even if it is written in an Agreement, that portion of the Agreement can be deemed unenforceable.

PA courts will always rule according to the best interests of a child. Even if you come to an agreement outside of court, the courts will be involved if future modification of child support is requested – and usually, at some point in a child’s minority, a modification is requested. Reasons a custodial parent may seek child support modification may include increased cost of living, changes in the custodial parent’s income, health of the child, education expenses, and more. Even a significant improvement in the non-custodial parent’s income (for instance, if the father’s income doubled since the divorce) could justify additional child support since the child should benefit from the father’s increased income.

If the mother (assuming she is the custodial parent) is unable to support the child, the father will be required to step in before the state provides any support. In fact, the state may require the mother to pursue legal action against the father for repayment of any public assistance the child has received.

This may seem unfair – after all, at the time of the divorce, the couple determined that the value of the house generously covered the projected costs of child support until the child’s age of majority. The father might be tempted to think the ex should sell the house to release the finances that he already paid her.

However, the court would not be likely to see this as being in the best interests of the child. Maintaining a stable home environment is almost always considered a crucial element of healthy childhood development. Most courts would rule that the father would owe monthly child support if it is needed, even if the initial agreement was to trade child support for his equity in the home.

The Law and Mediation Services of Elissa C. Goldberg is committed to helping couples reach equitable and mutually beneficial divorce agreements through mediation and collaborative law. Contact our Doylestown Bucks County office for a free initial consultation at (215) 345-5259 to see how we can help you develop custody arrangements and a divorce settlement that will avoid future problems and benefit every member of the family.