There are several different methods of dividing a family home during the divorce process and the value of the home can impact that process and what the couple decides is the best option for them. To help divorcing couples resolve property division concerns, including what they will do with their home, they should be aware of the different options how their home’s value may impact each of them.
Sell the home and share the proceeds
One option is for the divorcing couple to sell the home and split the proceeds from the sale. This option can cause a delay while the divorcing couple waits for the home to sell. The ability of the divorcing couple to sell the home may be impacted by the home’s value at the time they make the decision to divorce and sell.
One spouse buys out the other spouse
If one spouse wishes to keep the house, they may want to buy out the other spouse’s interest in the home. This process will also require the home to be re-financed to remove the spouse whose interest is being bought out from the mortgage loan. This process can be impacted by the value of the home if it has an impact on the ability of the home to be re-financed.
The spouses continue as joint owners
Another option is if the divorcing couple decides to keep the family home for a period of time as joint owners and to sell it at a later date. This decision may be directly impacted by the home’s value if, for instance, the divorcing couple owes more on the home that it is valued at when they decide to divorce. There are other reasons, including one parent staying in the home while the children grow up, that may cause divorcing couples to select this option.
Make informed decisions
The value of the divorcing couple’s home at the time of the divorce can have an impact on what they do with the home, and how they decide to divide the home, and may have a greater impact on their overall property division settlement agreement. Because of these potential complexities, it is helpful to have trained guidance throughout the process, including trained guidance from attorneys who have experience with property division and real estate law.