If you’re getting divorced, you may need to decide what to do with a home that you and your spouse bought during your marriage. From a financial perspective, it may be the most valuable and important asset you own. From an emotional and sentimental perspective, you may be attached to the memories of the home, the sweat equity you provided, and it may be important for your children.
When going through a divorce, you should know the various choices you have. Here are three different options for you to consider:
Sell the house
Many couples choose to sell their homes, so they can each go their separate way. This can be difficult from a sentimental perspective, but it is often easiest from a financial perspective. Once the house has been sold, any leftover equity can be divided and used to seek new living spaces.
Buy half of the house
If one person wants to sell and the other wants to keep the house, that is sometimes possible as well. The person who wants to keep the home will have to purchase the other’s half interest. Often this involves getting a new mortgage and buying out their spouse’s share. One potential hurdle is qualifying for a mortgage on one income, rather than two.
Own the home together
Additionally, couples have the option to keep owning the house in their joint names as unmarried co-owners. You may want to do this if the value of the house is increasing, and you want to wait and sell it in the future. Some parents will share ownership, so their children can remain living in the same home while the parents take turns living with them.
No matter what you decide is the best option for your family, be sure you understand all the legal steps you need to take during the divorce process.