One of the biggest issues that you may face when you’re going through a divorce is the property division process. Oftentimes, the house is the largest asset that you’ll have to deal with.
There are three primary options for the home:
- Sell the home
- One party buys out the home
- Co-own the home
Before you make a decision about your preferred outcome for the home, you should ensure that you’re carefully considering a few points. These may guide you into the best decision for your needs.
The true cost of keeping the home
The cost of keeping the home is one of the major considerations to think about. You’ll have to be able to pay all the bills with your own income. This includes the mortgage, which will have to be refinanced in only your name if you keep the home. You also have to think about insurance, taxes, upkeep and repairs.
Your ability to pay off debts
Selling the home might make it possible to pay off other debts, so you’ll have a fresh financial start. If the home had a considerable amount of equity, you may also have some money left to split once other debts are paid. A proper appraisal of the home is critical if you’ll sell the home, and both parties will have to agree on the sale price and accepted offer terms.
The marital home is only one part of the property division process. Being able to balance the home with other assets and debts may help you to walk away with a settlement that’s in your best interests.