Going through a divorce means you have to divide the property you gained during the marriage. One of the biggest assets that some couples will have to handle is the marital home.
There are several options to consider when you’re trying to determine what you should do with the home.
1. Sell the house and divide the proceeds
One common approach is to sell the marital home and split the proceeds between both parties. This option provides a clean break and may allow both individuals to use the money to secure new living arrangements after the end of their marriage.
2. One person buys out the other
If one party wants to keep the marital home, they can buy out the other person’s share of the property. This typically involves refinancing the mortgage in the name of the person who will keep the home and using the new loan proceeds to pay the other person their share of the home’s equity.
3. Co-own the house
In some cases, both parties may agree to co-own the marital home, especially if they have children and want to maintain stability in their lives. A formal co-ownership agreement should be put in place to outline the responsibilities and rights of each party.
4. Rent the property
If neither party wants to live in the marital home, but they also don’t want to sell it, they can choose to rent the property and split the rental income. This option can provide both parties with additional income while allowing them to maintain ownership of the property.
Taking the time to evaluate all the decisions is beneficial. You must ensure you can handle the financial implications of the end result, so be sure to consult with someone who can help you determine what’s in your best interests.