Nobody exchanges wedding vows hoping for a divorce in 5, 10, or 20 years, but unfortunately divorce has become a fact of life in our society. In addition to overcoming the emotional trauma of divorcing from your partner, you also must make critical financial decisions that could impact the next many years of your life. One such decision is what to do with your family home after your divorce is finalized.
Elect One Spouse to Keep the Home
This is a very complex choice, but one that could work well for you in the right situation. If you and your soon-to-be-ex spouse can agree together on just one of you keeping the house, you can begin to make the many arrangements required for that plan to become a reality. You will need to begin with an appraisal- or three. By ordering three appraisals, you can fairly determine the value of the home. Then it’s a matter of determining if you can afford the property, buy out your ex, and refinance the property in just your name. Don’t forget to consider property tax and insurance payments in addition to the mortgage itself.
Keep the House as a Joint Asset
This isn’t the best plan in a contentious divorce, but if you are separating from your spouse on relatively peaceful terms you could both keep the house and either decide who lives in it or rent it out to another family looking to settle down. This plan will only work if you can handle communicating with your ex about house payments, maintenance, taxes, expenses, and other matters.
Sell The House
Depending on your situation, it might be most financially savvy to sell the house and split the profits of the sale. This is a good plan if you have solid equity in your home and you aren’t at risk of paying excessive taxes after the sale. Selling your house will help you separate from the memories of your old marriage and move on to new experiences and adventures somewhere else.
Before you make a final decision, speak to a divorce lawyer and learn more about all of your options.