Figuring out what to do with the family home during divorce can be daunting. For that reason, divorcing couples should be familiar with the options available to them through the property division process. Here are some options for dividing a home during divorce.
Sell the home and divide the proceeds
Selling the home and dividing the proceeds may be the simplest method for dividing the family home. It will likely require each of the spouses to secure alternate living arrangements which should be taken into account if the decision is made to sell the home and divide the proceeds. Tax implications of the sale should also be taken into consideration.
One spouse buys the other spouse out
If one spouse wishes to retain ownership of the home, they may want to buy the other spouse out of the home. This will require a valuation of the home to determine the buy out price of the home. It is likely the home will need to be re-financed in the name of the spouse retaining the ownership interest of it which should also be taken into account.
Both spouses continue to own the home as joint owners
If both spouses wish to retain joint ownership of the home, they will need to agree to how home-related expenses will be paid for moving forward. This may be an option divorcing spouses wish to consider if one spouse wants to remain in the home until minor children are grown, as an example.
Because there are several different approaches divorcing couples can take to dividing their family home, they should be familiar with each of them and the benefits and considerations of each. Dividing the family home can be a delicate and emotional process which is why the property division process can help couples navigate that challenge.