One of the most difficult things for some people who are going through a divorce to handle is the fate of their martial home. There may be an emotional tie to the home and many investments may have been made to tailor this space to the needs of its occupants.
If you’re divorcing, it’s important to try to remove the emotions from the decision when you’re trying to figure out what to do with the home. There are a few options to consider as you move forward.
One spouse keeps the house
In some cases, one spouse may buy out the other party’s share in the home. This usually requires the individual who’s keeping the home to obtain a new mortgage. The balance of the mortgage must be considered. It’s sometimes possible to balance out the price of the buyout through forfeiting the right to other marital assets.
Sell the house
Selling the house gives both parties a clean slate. If there’s a profit, it can be used to pay off marital debts, which can protect both parties’ credit reports. Having a valid valuation and agreeing on what offer to accept are important steps if this is the fate of the marital home.
Co-own the home
Another option is to co-own the home. It could serve as a rental property or both parents may agree to raise the children there. In either of these situations, having a contract with the terms for upkeep and any profits is critical. If the home is being kept to raise the children, what happens when the kids are grown should be stated in the contract.
Ultimately, you and your ex must determine what’s best for your situation. Seeking legal guidance proactively can help you to make the most informed decision for your circumstances.
