You Have 4 Basic Options When In The Midst Of a Divorce
- - Sell the house now and divide up the proceeds
- - Buy out your spouse
- - Have your spouse buy you out
- - Retain your ownership
Sell The House Now and Divide Up The Proceeds. Your primary consideration under these circumstances is to maximize your home's selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be. Not that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.
Buy Out Your Spouse If you intend to keep the house yourself, you'll have to determine how you will continue to meet your monthly financial obligations if you now only have one salary. I f you use two incomes to qualify for the old loan, refinancing on your won might be a challenge.
Have Your Spouse Buy You Out If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the old home loan is not refinanced most lender will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won't have legal ownership.
Retain Joint Ownership Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on that consideration which may change from the time of your divorce to the time of ultimate sale.
When You Decide To Sell
If you and your spouse decide to sell your home, it will be important to work together through a professional to maximize your return. Differences aside, you both should be present when a listing contract is put together. Both of you should understand and sign this contract, and both should be active in the ultimate negotiations.