Division of assets is a major component of any divorce. For many couples, the most valuable asset they own is their home.
People who are divorcing should learn their options regarding selling or retaining the family home.
Buying out one spouse
Often one party in a divorce wants to retain ownership of the family home. In these cases, one spouse can compensate the other during the divorce settlement in exchange for full ownership of the house. To accomplish this, an appraiser should inspect and evaluate the property to accurately assess the home’s market value.
Buying out a spouse can be a complex process. It may involve refinancing the mortgage to remove the other spouse’s name and assume full ownership. However, it is a good option for those who want to keep property in the family.
Real estate co-ownership
Some people choose to continue owning a home jointly after they divorce. This approach requires a cooperative and communicative relationship between the ex-spouses, particularly regarding property maintenance and mortgage payments. Co-owning the house can work for couples with children who want to provide stability while transitioning through the divorce.
Selling the home
Many couples decide to sell the family home and split any proceeds in the divorce settlement. This option makes it easy to divide the property fairly. It is a practical choice if neither party wants to continue living in the house. Selling the home can also be a good way for each person to receive funds to find new housing after the divorce.
There are multiple ways to separate property fairly, including the family home, when going through a divorce.