Options for homeowners in a divorce

On Behalf of | May 29, 2023 | Family Law/Divorce

Owning a home together can complicate your divorce. For many couples, it is their biggest asset and one that both are keen to keep. 

Here are some possible solutions:

Sell up

The house is just one of many assets that make the asset total you must divide. Selling it and adding the takings to the pot can make that clearer, removing the emotional attachments that get in the way.

It also helps you understand that the property’s value is not the current ticket price or what you bought it for, but what you can sell it for, minus what’s left on the mortgage.

Retain it and rent it out

This can be a good choice if the property market has experienced a downturn in your area and you are confident it will rise again. You could rent it out to a third party until things pick up. If you do this, remember that you can’t just put all the rent into paying off the mortgage. You need to keep some aside for unexpected costs and regular upkeep.

One of you buys the other out

Be sure to move the mortgage to one name if you do this. The buyout does not necessarily need to be a cash exchange. You could work it so that the other party takes an equivalent, greater share of assets from the total asset division, in exchange for giving up their share in the house.

Whichever solution you choose, there are legal ramifications to be aware of, so make sure you learn about them first.