Most people associate divorce with the emotional implications of separating from a partner or splitting a family, but there are financial implications to consider as well. How are assets split? How much spousal support needs to be paid? And, most importantly, what happens to the family home?
This is a difficult question that often causes conflict in divorce proceedings. Here’s what you should know about the guidelines regarding home ownership options during a divorce.
Option 1: Select One Spouse to Keep the Home
Some divorces are surprisingly friendly. If you and your soon-to-be-ex spouse can agree together on just one of you keeping the house, you can begin to make the many arrangements required for that plan to become a reality.
You will need to begin with an appraisal – or three. By ordering three appraisals, you can fairly determine the value of the home. Then, it’s a matter of determining if you can afford the property, buy out your ex, and refinance the property in just your name. Don’t forget to consider property tax and insurance payments in addition to the mortgage itself.
Keep the House as a Joint Asset
This isn’t the best plan in a contentious divorce, but if you are separating from your spouse on relatively peaceful terms, you could both keep the house and either decide who lives in it or rent it out to another family looking to settle down. This plan will only work if you can handle communicating with your ex about house payments, maintenance, taxes, expenses, and other matters.
Sell The House
Depending on your situation, it might be most financially savvy to sell the house and split the profits of the sale. This is a good plan if you have solid equity in your home and aren’t at risk of paying excessive taxes after the sale. Selling your house will help you separate from the memories of your old marriage and move on to new experiences and adventures somewhere else.
Before you make a final decision, speak to a divorce lawyer and learn more about all of your options. Call (843) 273-6070 to schedule an appointment with the Law Offices of N. David DuRant in Myrtle Beach, South Carolina today.