If you own a home, then you might have a significant amount of equity built into it. You might also be emotionally attached to it. These realities can make it difficult to deal with the family residence in the midst of divorce’s property division process. While you may feel strongly about what you want to do with your home, you should carefully consider all of the alternatives to make sure that you’re making the best decision for you and your future. Let’s take a look at those options.
- Sell it: This option might be at the top of your list. It is for many divorcing couples. After all, selling the home to a third-party allows you to get your fair share of equity out of the home while also providing a clean break from your spouse.
- Buyout your spouse: If you have enough cash, you might be able to buyout your spouse’s share of the residence so that you can keep the home. If you don’t have enough cash, then you may be able to negotiate for the home by using other marital assets as bargaining chips. Just keep in mind that if you pursue this option then you’re going to end up solely responsible for the home’s mortgage and upkeep, which can be costly when you’re relying on only your wage.
- Sell it to your spouse: On the flip side, you can hand off the residence and secure some additional cash or other marital assets if you choose this option. This could set you up with more financial stability post-divorce.
- Continue to co-own with your spouse: I know. It sounds strange. But you have the ability to continue to co-own the residence with your spouse. This would allow you to continue to build equity, and it might give your kids a greater sense of stability. Of course, if you pick this option, then you’re going to have to figure out living arrangements, which means that someone is probably going to have to pay for a second residence.
Take a holistic approach to your divorce
There are a lot of aspects to a divorce, and any one of them can have a tremendous impact on your future. That’s why you should be diligent in thinking through your divorce and coming up with a strategy that works for you. Legal teams like ours stand ready to assist you in doing just that.