Custody of House as Property Division

My wife and I have a house in both names. Since separation she has lived in the house. I am living in a room with my daughter since I cannot afford to live separately. She states that she is entitled to the house, and that I must pay for the mortgage. Can she claim that she is entitled to the house as it is the way she was accustomed to living before the separation? I contend that we must sell the home and divide the equity value. I feel that I too am entitled to comparable living arrangements, but that is impossible since I cannot afford to even make the house payments on my retirement income, much less buy a home or even an apartment. What does the law support in this matter?

Hang tough, it will all work out. Screw the mortgage, take care of number one. At least you got your daughter on your side, it seems.

Equitable division of the assets generally means a 50/50 split of assets. If she wants the house, she will need to be able to refinance to take your 1/2 of the equity out of it. If she is a dependent spouse, she may be entitled to alimony, but that is based on her need and your ability to pay. From your explanation of the facts, it sounds like she would not be entitled to enough alimony to cover the cost of the house.