Financial options to consider
If you're like most couples, your home is one of your largest assets. But more than that, your family home represents memories of happier times. That's why when a divorce happens, it can be difficult to make decisions to give up your home.
However, regardless of how you both may feel about your house, getting the issue out and on the table can be an important first step in moving forward with your lives and proactively handling your finances after divorce. The following are three options to consider when dealing with the family house in a divorce.
Option #1: Negotiate a buyout
If your soon to be ex-spouse has no interest in retaining the home other than money, you may consider having him or her buy you out. A buyout is when one spouse releases their interest in the home in exchange for an agreed upon price. This can be an option if one of you would like to remain in the home.
Option #2: Remain co-owners
Another option would be to keep the home and make financial arrangements to co-own the property with your ex-spouse. This option essentially creates a type of a business agreement between the two of you - much like a co-owned commercial business. This may be an option if you both are unable to come to a financial agreement about the house.
Option #3: Put the house on the market
After a divorce, some couples would prefer to simply sell the house and split the profits. While that solution may not be what either of you wants, in some cases it may be your only option if neither one of you can afford to keep up with the mortgage payments. This option can difficult, especially if you have young children at home. On the other hand, selling the house can be viewed as a fresh start.
Regardless of what option you are considering, be sure to consult with your divorce attorney and/or financial advisor before making a decision.