Aside from the heavy toll on your emotions, a divorce also raises a number of issues concerning your finances. For many married couples, the family home is often their most expensive asset, so it’s no surprise why dividing a home’s value, or at the very least agreeing on what to do with it, can be a prickly affair. And with the ending of your marriage, the family home can turn into a place neither of you may want to continue living in afterward.
If this problem is something you’re dealing with right now, below are a few options to choose from to resolve the issue of the family home.
Let One Spouse Keep the House
There are cases where one of the parties will want to continue living in the family house. Perhaps they don’t want to let go of the place they call home, or know that keeping their residence is the most convenient option.
Option 1 – Your Spouse Keeps the Home
In any case, if you or your soon-to-be ex-spouse decides to keep the house, one of you will have to be released from the liability of paying the mortgage. This means executing the proper documentation.
Option 2 – You Keep the Home
On the other hand, if you’re the one who keeps the house, you can either continue under the same mortgage terms or refinance the mortgage to get better rates. You also need to have documents drafted to remove your soon-to-be ex-spouse’s rights to the home;
No One Keeps the Home
This means both spouses agree to sell off the home and split the proceeds. If you haven’t been married for very long or just recently moved into the house, you’re probably still paying the mortgage, which means you’re still liable for making payments, even after dissolving the marriage
If you and your spouse can agree on it, selling the house is usually the most expedient and cleanest option for dividing the property. You can then use the proceeds from the sale to pay off your mortgage, allowing you to move on from any payment liabilities and start life anew. Depending on how much you earned from the sale, you can also use the proceeds to pay off any conjugal debt you might have.
Take note, there are no guarantees that you can sell the home at a profit. Your home’s value will depend on several market factors, including the condition of the house, the neighborhood it’s in, and the general real estate outlook in your city or county.
Deciding to end a marriage is always hard, and dealing with the fallout is even harder. It’s best to plan ahead for what happens after the divorce, especially in matters that deal with money and property.
If you need assistance in matters of property division, let family law attorney Daniella Lyttle handle the job for you. Call the Lyttle Law Firm today to find out how we can help.