Divorcing couples have the challenge of deciding what to do with their home when they divorce. Determining what to do with a family home is part of the asset division process and divorcing couples should be familiar with the different ways they may wish to approach dividing potentially their biggest asset.
How a home is divided during the divorce process can depend on the unique situation and circumstances of the divorcing couple and their needs and goals during the property division process. There are three common ways to approach dividing a family home for divorcing couples to consider:
Keep the home
The divorcing couple may decide to keep the home and sell it at a later point. This could be done for a number of reasons including if there are minor children one spouse wishes to remain in the home with, if it is not a good time to sell or the divorcing couple cannot afford to set up two households right away at the time of divorce.
Sell the home and split the proceeds
This can be the simplest and cleanest way to address a family home during divorce. If the divorcing couple sells the home, they can then play off any outstanding mortgage and costs and split what is leftover.
One spouse buys the other out
If one spouse wishes to keep the home, they can potentially buy the other spouse out and take out a new mortgage on the home to replace the one that includes the other spouse. If the spouse wishing to keep the home does not have the funds to buy the other spouse out right away, it may be possible to structure a payment over time.
Make an informed decision
Based on the situation and circumstances of the divorcing couple, one option may be better than another for them. It is helpful to be familiar with what the options are so they can evaluate them based on their needs and goals and decide which is best for them.