There are many different things to consider when you’re going through a divorce. For example, how will your property be divided? If you own a home, that might be one of the biggest assets that you have to manage in a property division scenario.
Because of your emotional ties to your home, it might be difficult to think logically about how to address it when crafting a divorce settlement. These are some of the concerns you’ll want to keep in mind as you work to address what will happen to your marital home.
One spouse buys out the other
One option that you have is for one spouse to buy out the other’s share of the home. This can be done through a cash purchase or in exchange for assets. The person who gets the home may even take on more of the debts in order to balance out the property division so it’s equitable.
Sell the house
You and your ex may opt to sell the home and split the profits. One consideration for this is that you may choose to pay off debts so that you can make a clean financial break after the divorce. Pay close attention to the sale price because you’ll need enough to pay off the mortgage first.
Continue to own the home together
You and your ex may continue to jointly own the home. This might be beneficial if the market is down and you can’t get what you need from the home yet or because you want to use it as a rental property. Some parents opt to use the bird’s nest parenting style where the kids live in one home while the parents rotate in and out, so joint ownership might be viable in that situation. If you own the home jointly, be sure you have a contract that outlines how expenses, as well as profits, will be handled.
It is important to take the time to think carefully about how each option may impact your finances now and in the future. This logical thinking may be easier if you have a legal representative who can walk you through the options for dividing marital property in ways that meet your most pressing immediate and future needs alike.
There are many different things to consider when you’re going through a divorce. For example, how will your property be divided? If you own a home, that might be one of the biggest assets that you have to manage in a property division scenario.
Because of your emotional ties to your home, it might be difficult to think logically about how to address it when crafting a divorce settlement. These are some of the concerns you’ll want to keep in mind as you work to address what will happen to your marital home.
One spouse buys out the other
One option that you have is for one spouse to buy out the other’s share of the home. This can be done through a cash purchase or in exchange for assets. The person who gets the home may even take on more of the debts in order to balance out the property division so it’s equitable.
Sell the house
You and your ex may opt to sell the home and split the profits. One consideration for this is that you may choose to pay off debts so that you can make a clean financial break after the divorce. Pay close attention to the sale price because you’ll need enough to pay off the mortgage first.
Continue to own the home together
You and your ex may continue to jointly own the home. This might be beneficial if the market is down and you can’t get what you need from the home yet or because you want to use it as a rental property. Some parents opt to use the bird’s nest parenting style where the kids live in one home while the parents rotate in and out, so joint ownership might be viable in that situation. If you own the home jointly, be sure you have a contract that outlines how expenses, as well as profits, will be handled.
It is important to take the time to think carefully about how each option may impact your finances now and in the future. This logical thinking may be easier if you have a legal representative who can walk you through the options for dividing marital property in ways that meet your most pressing immediate and future needs alike.