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Buying out a spouse’s share of the home in a divorce

On Behalf of | Oct 8, 2019 | Divorce

Couples in Alabama who are going through a divorce might own a home together. They will need to decide what they will do with it. One person might want to keep the home instead of selling it.

They will need to hire at least one appraiser. The best case scenario is an appraiser they both agree upon, but in some cases, it might be necessary for each person to have an appraiser. If the appraisers come up with very different values for the home, a third party may need to be hired to resolve it. The home’s value and the mortgage help determine how much equity each person has in it.

The buyer might hire a home inspector to check for any issues that may have arisen, such as termite damage. If there are any problems, the couple must decide how they will share the costs. They must also determine how the spouse keeping the home will buy out the other spouse. Some people reach an agreement in which one keeps the home and the other takes an asset of equal value. A refinance may be necessary, which will require the buyer to qualify for a new mortgage. The spouse who is not keeping the home should be removed from the title with a quitclaim deed or by another method.

People do not have to go to court to reach an agreement on property division. They may be able to agree on a settlement through negotiation. However, it is important that each person understands the financial consequences of how property is divided. An attorney may be able to assist a person in developing a strategy for property division. People should have a sense of what their budget will be after divorce as well as what expenses are associated with keeping the home or other assets.

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