Since divorce elicits a range of emotions, it is a devastating experience, especially when asset distribution becomes necessary. In an effort to achieve equitable distribution, many times you must sell your house during a divorce.
However, it may be possible for the husband or wife to hold onto the house. Here are common divorce property division questions that will help determine whether or not the home must be sold when two spouses split.
Considerations for Couples Whether to Sell Your House During a Divorce
When a couple divorces, there are certain decisions that must be made regarding the family home. There are a few considerations that will affect the situation.
- Housing Options. Before selling or keeping the home, it is important for both spouses to compare the cost of house ownership and similar rental costs. It is wise to consider how moving will affect children’s school situations as well.
- Actual Profits. It is essential for a couple to speak with a real estate expert and uncover the true worth of the marital home; as well as to learn the amount of money that will be left over after the mortgage and other bills are paid. There may be less profit than expected.
- Affordability. Divorce is a time when finances will need to be evaluated. One party may not be able to make home payments alone or qualify for a refinance. Expensive taxes, utility bills, and maintenance costs are key factors as well. If neither party can afford the home, it must be sold.
- Benefits of Breaking Clean. Although a family home contains countless memories, there are certain benefits that come from making a clean break. For instance, both parties can begin fresh with new houses that fit individual needs. Any profits can be used to accomplish future financial goals. Also, there will never be thoughts of exes sharing the old home with new loves.
Dealing With a Mortgage
When a marital home holds an expensive mortgage, it is important to discuss whether a spouse will remain or move on. If one partner can afford the home, it is possible to arrange a buyout. This person must refinance the loan in his or her name. Whatever you do, do not leave both names on the home regardless of any written agreement.
Divorce Sale of House
If neither party can afford the house, then you must sell your house during a divorce. Since a quick house sale is best, it is essential to list as fast as possible. No matter how long the home remains on the market, it is vital to keep making the loan payments so that good credit is maintained.
If a couple cannot afford the payments, there are alternatives. For instance, many couples exercise a short sale divorce option. A short sale is an agreement with a lending institution that agrees to the sale of the property for less than the mortgage amount. In this circumstance, neither spouse leaves with any profit. A short sale is much better for a person’s credit than foreclosure or bankruptcy.
If you are going through a divorce and have come to equitable distribution of assets, it is not always necessary to sell your home. However, in certain cases, it may be best for both parties. To discuss all the options, it is wise to consult with a divorce attorney at Cheshire Family Law. Attorney Cheshire will help you consider all the possibilities so that you make the right decision for your future. Call Eric C. Cheshire today at (561) 677-8090 to schedule a no-obligation consultation.