For many couples, the family home is the largest financial asset that they’ll have to address during their divorce. It’s also an asset that comes with considerable emotional ties. Both of those factors can make it difficult to determine what should happen with the home because both parties may want to keep it.
There are three primary options that are present for a marital home during a divorce. Each of these has specific points to consider.
Buyout agreement
A buyout agreement allows one party to buy the other party’s share of equity in the home. This can be done via a cash transaction or by exchanging other assets as part of the property division process.
Sell the home
Selling the home gives both parties a clean slate. The mortgage is paid off with the proceeds from the sale and they can split anything that’s left. This can take time, and considering things like real estate agent fees, taxes and similar expenses is critical.
Defer the sale
Deferring the sale is common when there are children living in the home. Typically, this arrangement allows the parent with primary physical custody of the children to remain in the home. Once the children are out of the home, the property is sold. In some cases, this option is viable if the sale of the home needs to wait for more favorable market conditions.
The property division process must be handled carefully during a divorce, partly because it can have a profound impact on each party’s financial stability. Working with someone who’s familiar with these matters is beneficial.
