You home may be one of your largest assets, and during a divorce, dividing that asset can get tricky. Fortunately, there are a few different options.
The first thing to consider is how much time you have left on your mortgage. Is it worth sticking it out and keeping your name on the mortgage for a few months or a year to pay it off? If so, you could sell the home for a profit that you can both split. Would you rather get off the mortgage and receive a payout from the equity or other assets? That’s another possibility.
One thing to consider is what will happen if you fight for your home. Will it drag out the divorce, or will you be able to negotiate with your spouse to come up with an amicable solution? Sometimes, there are alternatives to obtaining the home, like selling it or renting it out to receive compensation in the future. You and your attorney can work with your spouse and his or her legal team to come up with an arrangement that could work well for your situation.
Finally, consider the fact that you could refinance the mortgage if you do take it on, allowing the other person to get off the mortgage completely. It’s possible to buy out the other party, potentially through a payment from your own personal accounts or from the home’s equity. You’ll need to refinance the loan on the home to get your new interest rate, so make sure to think about how this could change the home’s monthly cost if you choose to live in it in the future.
Each of these decisions can change your future, so it’s important to discuss them with your attorney. The right choice now could help you get the most out of your divorce settlement.
Source: Total Mortgage, “How to Handle the House During a Divorce,” Thomas Bepko, accessed Jan. 04, 2017