3 options for a jointly owned home in a divorce

On Behalf of | Oct 7, 2024 | Divorce

Many couples seek to buy a home together once they are married. It helps cement their relationship and provides a base for the life they wish to build together.

If the marriage does not last, that jointly-owned home can become a point of contention. There are several options to consider:

1. They sell and split the proceeds 

If you sell the house you can use the money the sale brings in to pay off any remaining mortgage. You can then include anything left over in the joint pot of money to be split during property division. Selling provides a clean break and removes the emotional issues that so often accompany a place you once lived in together.

2. Both hold onto it for now

Some couples choose to keep the house together. Reasons could include the house having lost value, so selling now would mean you both lose money. A rising market where you both want to wait until you can maximize your profits. Or a situation where only one party wants the house but they cannot afford the mortgage on their own, so the other party agrees to stay on the mortgage to help out.

3. One person keeps it

Often, the house will stay with one person. Sometimes by agreement, sometimes after a court battle. A house is typically one of the most valuable possessions a couple has, so it can account for a big chunk of a person’s entitlement when the total assets are split. If you want to keep the house, be sure it is worth whatever you may have to give up in exchange.

Whatever option you favor, seeking legal guidance can help you understand the full implications of that choice.