Home may be where the heart is, but as it is oftentimes a couple's most financially valuable asset, disputes about what to do with the family home often occur should the couple's marriage come to an end. In general, homeowners going through a divorce in Gulfport have three options to consider: having one party keep the home, selling the home or having both parties keep the home. Let's explore these options.
First, one party may keep the home. If so, that party will need to refinance the home in his or her name only, and may also have to buy out the other party's share of the home with regards to the home's equity. Before a buyout can occur, however, the home should be appraised, so that the parties can determine the value of the home.
The second option is to sell the home. Of course, this may be a sentimental process, as the home may contain many memories -- some pleasant, some unpleasant. However, there is a financial aspect to this that goes beyond simply the profit made from the sale. If there has been a significant amount of appreciation in the home, after it is sold, capital gains taxes may be owed. In addition, brokers' commissions are usually paid for by the sellers.
A third, and less common choice, is for both parties to continue owning the home together. In this case, the home would be owned as a joint asset. However, before choosing this option, each party needs to be comfortable retaining this attachment financially with their ex, and be confident that their ex will adhere to the parties' agreement regarding mortgage payments, and paying for upkeep, insurance and taxes.
In the end, deciding what to do with the family home after a divorce is a major decision. There are legal and financial implications with each option that should be thoroughly understood before proceeding. Seeking the advice of a family law attorney may help couples better understand their options, so they can make an informed decision.
Source: NerdWallet, "Deciding What to Do With the Family Home After Divorce," Mary Ballin, Oct. 31, 2016