4 Ways to Handle Real Estate During a Divorce
As if divorce isn’t complicated enough, the division of property can be a brutal process. The attachments individuals, couples, and families have to their homes are powerful. However, if you want your divorce proceedings to be fair, you must equitably divide your assets. For most, real estate is a major asset that becomes a critical decision factor in what are already overwhelming circumstances.
Since the value of the couple’s home becomes an essential part of the litigation process, professional real estate appraisers are necessary. If you are going through a divorce, the first thing you must do is contact respected lawyers who can give advice. Once you have the home appraised, you will then need to decide what to do with the property. As you will learn, you have multiple options when it comes to how you choose to handle your real estate during a divorce.
1. Sell the Property
For many couples, the best option is to put the house on the market and sell it. Selling the home is the easiest way to split the financial remains evenly. This possibility may not work for everyone because it does involve time and you are not sure of the amount you will receive until the sale is final. For this reason, there are real estate companies or agents who work with divorcing couples primarily. In some cases, agents will be the home and then resell it for less value. For couples wanting a quick sale, this is one way.
2. Delay the Sale and Allow One Spouse to Remain
If the couple has children, they may choose to delay the sale of the home so that the parent the children live with does not have to move. For example, if the remaining spouse cannot financially afford the mortgage on his/her income only after the divorce, this may happen. When this occurs, there must be an agreement in writing stating when the sale of the house will take place. For example, some contracts say the sale of the home will occur after the children graduate.
3. Buy Out Your Spouse
Some individuals decide to buy out their spouse. If one person wants to remain in the home and can afford it with his/her salary, then the individual may purchase the home refinancing it and placing the mortgage in his/her name only.
4. Keep the Home as a Shared Asset
Keeping the home is certainly not the most favorable choice for a divorcing couple. However, depending on your finances and the value of your home, this may be a cost-effective solution for the time being. Some couples even find ways to continue living together rather than selling the home. Time explains, “This option is for only a select few couples who can live peacefully under the same roof. While the situation is not ideal, it can save both parties money, since it allows them to wait until the [housing] market goes up.”