Divorcing couples may ask how they should go about dividing their family home during their divorce. It is an important concern for many divorcing couples who should be prepared for how to address it. So, how to divide a family home during divorce? Here are some options that one may consider.
Sell the family home
The divorcing couple can decide to sell the family home and split the proceeds of the sale. This option will require them each to secure alternate housing so they will need to take into account the stability of their finances and credit during their divorce. Tax considerations, such as capital gains, can also be a consideration to take into account if the divorcing couple decides to sell the family home.
One spouse buys out the other spouse
Another option is if one spouse wishes to buy out the other spouse’s interest in the home and keep the home. This option will require a valuation of the home to determine the buyout price. It is also likely the home will need to be refinanced so the spouse who is being bought out can be removed from the mortgage and the deed on the home.
The spouses continue as joint owners
A last option is for the spouses to continue with joint ownership of the home until, for example, a minor child living in the home is grown. Under this option, one spouse with custody will likely remain in the home with the child. The divorcing spouses will need to work out who will pay for home-related expenses and how those expenses will be shared if this is the option they select.
Deciding what to do with a family home during divorce can be an emotional process for the divorcing spouses. For that reason, it is helpful for them to be prepared with their options so they can decide on the best one for them.