Divorce and Finances

Divorce and Finances: 3 Financial Options For Dealing With The Family House

Discussing what to do with your family home when divorcing can be difficult but unavoidable. There are a few options you should consider regarding how to handle everyone's interest in the home.

Divorce and your Family Home

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.

For more information on divorce and finances, visit the Protective Learning Center.

Was this article helpful?
1
1

Divorce and Your Home

If you and your spouse are divorcing and own a home together, you'll need to discuss what will become of the house. For some couples, this may be a difficult topic, but the sooner you discuss your options, the better. This article looks at three financial options for dealing with the family home during a divorce. For more information, visit the Protective Life Learning Center.


All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

WEB.1927.03.16