A marital home is often the most significant asset a couple may be compelled to manage when spouses divorce. If you are divorcing, you’ll have to consider several factors when trying to determine the best course of action for your home.
Typically, there are four possible options that you can consider when you’re trying to determine what to do with the marital home.
Sell the home
In many cases, the marital home is sold during the divorce process. This can enable both parties to pay off marital debt or to fund the purchase of separate residences. There are several considerations that must be evaluated if you choose to sell your home. You must know the home’s value, and both parties must agree on the sale price. Remember, any mortgage remaining on the home must be paid when you sell the house and only the remaining profits will be available for asset division purposes.
Another option commonly used during divorce involves one spouse buying the other spouse out of their portion of the home. This could be a cash transaction; however, that’s not always the case. One party may take on a more significant debt load than the other party or hand over other marital assets to make up the difference in buying the home. If a mortgage remains on the house, it must be refinanced into a mortgage only in the purchasing person’s name.
An unconventional option that some people take advantage of involves keeping the home to use for the bird’s nest parenting style. This involves the children remaining in the home while the parents rotate in and out, based on whose turn it is with the children. This option requires the adults to work closely together to take care of things for the house. They also need to plan what will happen to the home when the children become adults.
Mutual rental property
Another option not commonly used is maintaining mutual ownership and renting the property out as a source of income. The exact terms of this partnership should be written so it’s clear how expenses are handled and what will happen with profits.
Ultimately, the marital home is only part of the property division process, so consider other components before committing to an approach. Seeking legal guidance can help you to make truly informed decisions in this regard.