How To Deal With Real Estate During A Divorce
Getting a divorce is a stressful and anxious time for most people. While you want it to go smoothly, oftentimes there are a few bumps in the road and this can include the question of what to do with any real estate investments, including your home. Who gets to keep it? Do you have to sell it and divide the sale money between you? Are there other options?
There are a couple of different ways you can deal with real estate properties during a divorce. Here are some options that are available to you.
Sell The Home And Split the Proceeds
The first option is one you might think is the most likely one: sell the home and split the proceeds between you. It probably is one of the most common ways a divorcing couple deals with their real estate investments, including both the home they live in and any rental properties, during a divorce.
There are a few reasons that this might not be the right option for you. It's true you can go this route if you bought the home together during the marriage, but if the home belonged to one spouse before marriage, or it was inherited property, the home may only belong to that spouse and the other may not be entitled to it at all in a divorce. You should ask your lawyer in your state what the laws are surrounding previous ownership of a home during a divorce.
One Spouse Buys Out The Other
If one spouse really wants to keep the home and the other is more interested in making a clean break and receiving their share of the home financially, then one spouse could buy out the other and retain ownership. The mortgage would most likely have to be renegotiated and the spouse who wants to own the home must have a good job and be able to make the mortgage payments on their own.
In some cases, you may have to pay off the previous mortgage if there is one, renegotiate the loan with a lender, or perhaps even get a mortgage because your home was already paid off in order to buy out your spouse.
Keep The Home For Now And Sell It Later
Another option that might not be as common to many couples is to keep the home for now and sell it later should you want to. This is usually the best option if you have school-aged children and you don't want to make them move into a new home during the divorce. This is also a good option when you aren't in a good enough financial place to buy a new home and renting isn't worth it if you have a lot of equity already in your home.
You can decide to both pay the mortgage payments and then agree to equally sharing the profits of the sale later, or one of you will pay the mortgage and you can decide whether or not that spouse will receive more of the share of the property later when it sells.
In any case, it's best to talk to a divorce lawyer when deciding what to do with real estate in the even of a divorce.
