You know you want to divorce your current spouse, but you do not know what to do with your marital home. How do you divide one of your biggest assets?
Bankrate explores options that may help you choose. When you understand all your choices, you may have an easier time starting the next chapter of your life.
Refinancing the mortgage
If you and your current spouse have a joint mortgage, you may refinance the mortgage into a single name. This could work if you or your spouse no longer wants to bear financial responsibility for the rest of the home loan. If your soon-to-be former partner does not want to remain on the mortgage, remove her or his name from the title, too. By keeping the name of the spouse who wishes to withdraw on the title, he or she benefits from selling the home.
Staying in the home
Divorcing spouses must have an open and honest conversation about staying in or giving up the marital home. The situation may take a turn for the worse if both partners want to stay in the house and argue over it. The person who remains in the house must have the financial means to keep up with the price of homeownership, property taxes and maintenance.
Selling the home
You and your partner may decide to sell the home. If so, you must pay off the mortgage, possibly invest in upgrading the home to get it ready for the market and split the profits. Even if you do not want to sell the home, you may have no choice but to if your divorce agreement requires you to meet a mortgage refinance deadline and you miss it.
Do you have a better idea of how to handle your situation? Once you know all the options, you may feel better about your divorce.