During divorce, the parties must divide all their marital property. This includes everything from shared bank accounts to real estate, like the marital home. There are several different options for dividing a home during the divorce process and it can help divorcing couples as they progress through their divorce to be familiar with each.
Three main options
There are several different options that may help divorcing couples as they prepare for the property division process and dividing their home throughout this process. The main options for dividing a home during the divorce process include:
- Sell the house and split the proceeds. Selling the house and splitting the proceeds can be the cleanest and simplest way to divide the equity the couple shares in the home. Once the mortgage debt is retired, and the couple pays the taxes and other expenses related to the sale, they can split the remaining money between them.
- One spouse keeps the home. One spouse may want to keep the home. The simplest way for one spouse to hang on to the home in the divorce is to refinance the home which will remove the other spouse from the mortgage loan. It can also free up cash for one spouse to buy out the other.
- Both spouses keep the home. Both former spouses may decide to keep the house on a temporary basis. This is usually done for one of the spouses to remain in the home while the children grow up. The divorcing spouses will need to create a plan to share expenses related to the house.
Dividing the home can be a difficult process for all involved. By understanding the different options available, the divorcing couple can be better prepared for when the time comes.
