One of the more important decisions many divorcing couples will need to make during the divorce and property division process is what will happen to the family home. This blog recently discussed the property division process during divorce and it is also helpful to prepare for the process of dividing the family home.
What are the different ways to divide a home during divorce?
One option is for the divorcing couple to continue to own the home as joint owners. This allows one spouse to remain in the home to care for minor children until they are grown. If the divorcing couple decides on this approach, they will need to reach an agreement concerning who will make mortgage payments and if one or both spouses will pay for home-related costs and expenses.
Sell the home
Another option for the divorcing couple to consider is to sell the home and divide the proceeds of the sale. Couples who decide on this option need to take into account the tax consequences of any potential sale. In addition, if the divorcing couple decides to sell the home, they should also take into account that each will need to secure new housing arrangements.
A third option for divorcing couples to consider when addressing the family home during divorce is that one spouse may wish to buy out the other’s interest in the home. This option will likely require the mortgage on the home to be refinanced which the divorcing couple should also take into account when deciding on a buy out price and this option for the home.
There are many practical and emotional considerations that go into deciding what to do with a home during divorce. It is valuable for divorcing couples to understand their options and how family law tools can help them navigate the process of dividing the family home.