One primary issue during the property division process when a couple divorces can be the process of how the couple’s home will be divided. It is useful for divorcing couples who have concerns with what will happen to their home to be familiar with this process.
There are several common options for dividing a home during the property division process.
Sell the house and split the proceeds
The simplest way for the couple to divide the equity in their home during the property division process is for the divorcing couple to sell the home and split the proceeds after they have paid of any mortgage debt, taxes and sale-related expenses.
One former spouse keeps the home
If one spouse wants to keep the house in the property division process, the best way to do that is to refinance the home which removes the other former spouse from the mortgage; pays off outstanding mortgage debt and replaces it with a new loan in the name of the spouse keeping the home; and frees up funds for the spouse keeping the home to buy out the other spouse’s equity share in the home.
Both former spouses keep the house temporarily
Sometimes it makes sense for the divorcing spouses to keep the home for a period of time if they owe more on it than the home’s value or they cannot afford to separate households. Joint ownership may be the option the couple agrees to for a period of time while one spouse remains in the home with the kids.
What happens to the couple’s home is an important part of the divorce process during many divorces. The family law process can help the divorcing couple address this and other property division concerns which is why understanding the process can be beneficial for divorcing couples.