Getting Divorced? Know What Happens With Your House
Posted on: 16 December 2021
If you are going through a divorce, you're well aware of how your shared personal property needs to be divided. However, the biggest and most complicated asset that needs to be divided is a home. Here is what you need to know about how to handle this particular asset.
Buy The Other Person's Share Of The Home
One option is for a person to buy out the other person's share of the home. This will involve having the home appraised to determine the current value of the home. The person buying the property will need to have the necessary cash on hand to buy the home or refinance and get a new mortgage to cover it. Of course, the biggest challenge will be qualifying for a mortgage as a single person.
Sell The Home And Split The Net Proceeds
The simplest solution will be to sell the home and split the net proceeds between both spouses. This is ideal if neither person wants to keep the home and each person is looking to take their share of the proceeds to put toward their own place. However, there are some details that need to be worked out, such as who will live in the home until it is sold and who will pay for the housing expenses until then. It is best to have a written agreement with this information in it.
Agree To Own The Home Until A Later Date
You may have a desire to keep the home for a specific amount of time before it is sold. This is often due to having children involved in the divorce and wanting to keep the home until they have graduated from high school and move out to go to college. This involves making a much more complicated agreement where one spouse is living in the home with the children and deciding on who will cover home-related expenses. For example, who will make repairs, who will cover the mortgage, and who pays for home insurance.
You also need to decide how to eventually split up the proceeds of the home. It may not be a 50/50 split of the proceeds by the time you sell the home, especially when one person continues to pay for the mortgage and maintenance.
Dividing a home can be a complicated situation. Work with a divorce lawyer to help figure out what plan is best for you.
For more information on how to divide a home, contact a divorce lawyer near you.
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