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What are your options for your home in divorce?

On Behalf of | Aug 10, 2021 | Divorce

You were probably thrilled when you found a home that you wanted to purchase. What you might not be prepared for is having to deal with that home if you and your spouse divorce.

Trying to figure out what to do about the marital home is often one of the biggest decisions of the divorce. Several options are often possible. You should look at how each one works for your specific situation

Does one person want to keep the home?

If one person wants to keep the home, it’s usually necessary for them to get the mortgage refinanced into their own name. They’ll have to buy the other party out of their portion of any equity in the home.

Is it better to sell the home?

This is usually the case when neither party can pay the mortgage alone or if there are considerable debts that could be paid off with the profit from the sale of the home. This should be considered carefully.

Could the home produce an income for both parties?

Sometimes, people who can get along despite their divorce might choose to turn the marital home into a rental property. Remember that this is only viable if you and your spouse can handle things together, including paying for repairs and upgrades. It’s best if you work out the agreement for how the income and expenses will be handled.

Consider all the options when you’re working through the property division process. Trying to determine how each option will impact you immediately and in the future may help you decide which option you want to pursue. Working closely with your divorce team enables you to determine which option is in your best interests.