A marital home is often the most sentimental and most expensive assets in a marriage. As such, when a couple goes through a divorce, the fate of the marital home is often one of the most difficult decisions they have to make.
When determining how to proceed, spouses must consider a few options. Considering the logical points of each of them can help to rule out some options so that the former couple can move forward with whatever opportunity makes the most sense – and is fairest – with regard to their marital home.
Sell the home and divide the proceeds
Couples may opt to sell the marital home and divide the proceeds between the parties. This approach allows both individuals to start fresh while receiving their share of the property’s value. They can use the money that’s left after paying off the mortgage to pay off some marital debt and then split what’s left. The division of proceeds is typically based on the couple’s legal agreement or court order to ensure a fair distribution of assets.
One spouse buys out the other
If one spouse wishes to keep the home, they can buy out the other’s share. This process involves assessing the home’s value and compensating the other spouse for their portion of the equity. This option is often chosen for stability when children are involved to minimize disruptions in their living situation.
Retain joint ownership
Ex-spouses may choose to retain joint ownership of the home temporarily or long-term. This arrangement can be particularly useful if the market conditions are unfavorable for selling or if they have children and wish to maintain a stable environment. Both parties must agree on mortgage payments, taxes and maintenance responsibilities.
Addressing a marital home is only one part of the property division process, and every aspect of the split must be considered as a whole. A property division settlement’s terms can have a significant impact on the individual’s financial future, so strategic approaches are often necessary. Seeking legal guidance is a great way to learn more.
