Trying to decide what to with your home when you divorce?
Your house is the largest asset in your marriage, so it’s certainly a big decision.
And it’s best if you can make that decision amongst yourselves rather than having a judge decide for you.
To start, make a list of potential repairs and determine the remaining loan balance. Once you’re clear on those things, you can examine the different options, which we’ve conveniently laid out for you below.
Remain in the Home Together
Believe it or not, divorced couples do this. While they typically have separate bedrooms, it’s certainly not an ideal situation. But it may make sense for financial reasons, or if both spouses want to be close to the children.
It’s also common for both spouses to remain in the home if they both are hoping to take ownership. The idea is that staying might help make the claim that they should be the one to remain in the home stronger.
Continue to Own the Home Together
In this scenario both of you continue to own the home but only one spouse stays. While this might help make the divorce less disruptive for your children, it means that you and your spouse will remain partnered up from a financial standpoint, which could result in further resentment.
One Spouse Buys the Home
While you – or your spouse – may be adamant you want to stay in the home, it’s important to really think about how you’ll actually feel being in a home chock full of memories of a failed marriage long-term.
You’ll also need to take an honest look at your budget. A lot of people underestimate the cost of a mortgage payment, on-going maintenance, property taxes, and insurance.
Do a Deferred Sale
A deferred sale means that the sale is delayed until a specific date. Both you and your spouse would continue to own the home but only one of you would stay in it. This may be a good idea if you suspect that home values will rise in your area.
If you have children, the courts may order a deferred sale to help ease the transition.
This option tends to be particularly risky for the spouse not residing in the property. It can lower their credit score and make it difficult for them to buy another home.
Plus, if the spouse staying in the home defaults on the mortgage payments, the spouse not living there will end up being responsible.
Sell the House Immediately
Selling the house and splitting it is a good way to get closure – and cash.
If you decide that’s the best option, you will need to agree on a selling price. If you’re having trouble, you can have your home appraised.
If your home is in excellent condition, a real estate agent may be able to help you get top dollar.
If your home is in need of a lot of expensive repairs, selling it to a professional home buyer is a good low-stress option. They will buy your home for cash (with zero fees) as-is so you don’t have to worry about any cleanup, repairs, or staging.
Plus, it’s a speedy process. Professional home buyers can typically close in as quick as seven days.
Want to find out if selling your home for cash makes sense for your divorce situation? Fill out the form below. We’ll get back to you quickly.