One of the biggest assets that’s part of a divorce is the marital home, which is often one that has significant emotional attachments. Trying to balance those emotions with logic isn’t always easy, but you still have to figure out what will happen with the marital home during your divorce.
There are a few options that you can explore. These include:
Buy out
You or your ex may buy out the other party’s equity in the home. This enables one person to remain in the marital home, but that individual will need to refinance the home if there’s a mortgage on it. The equity buyout can be handled through cash or a concession of other property.
Sell
Another option is to sell the home, which may be beneficial if it has considerable equity and there are marital debts. This could give you and your ex the opportunity to start life after the divorce without having a high debt load. Being able to pay off debts is also a measure of protection because creditors can still go after both parties if a debt remains unpaid, even if the divorce order assigned the debt to only one party.
Co-own
Co-owning the property is another possibility to consider. This is often beneficial if you share children who you want to remain in the home, or if the home can be used as an income property. Having a contract for how each aspect of this agreement will work is critical.
The property division process is one that can be complex. Considering the legall side of each option may help you to make decisions that are in your best interests. It may also be helpful to work with someone who can assist you with determining how to move forward in each step of the divorce.