One of the tasks that must be done when a couple divorces is to divide marital property. In many cases, one of the largest assets that has to be handled is the marital home.
If you’re going through a divorce, you should understand the options that are possible for that home. These typically include selling the home, one party buying the other out of the home or continuing joint ownership. There are a few things to consider as you go through the options to determine the best one for your circumstances.
Sell the home
If you sell the home, you can use anything that’s left after the mortgage is paid to pay off marital debts. This can help to give both parties a fresh start after the divorce is finalized.
Buy out
If one party buys out the other party, the person who’s keeping the house will need to obtain a mortgage for the home. The price they have to pay the other person their rightful share of the equity. This can be done by balancing out the property division or using cash.
Joint ownership
If you and your ex want to continue joint ownership, a contract that outlines who is responsible for what needs to be written out. If the property will be sold eventually, the terms of that must be included.
The home is only one part of the property division agreement that has to be handled. Working with someone who can assist with exploring the options and ensuring that everything is in order.