Going through a divorce is a major event in a person’s life because most of the things they’ve taken for granted during their marriage will change. One thing that has to be handled during this process is determining what happens to the assets they amassed during the marriage.
For some people, the marital home is one of the biggest assets they have to think about. There are several options that they can consider as they’re going through this part of the process.
One party may buy the other party’s share of the equity
One party may opt to remain in the home. This means they need to buy out the other person’s share of the equity in the home, which can be done with cash or using other assets. The person who keeps the home will have to refinance the mortgage in their name only, so they may have a considerable change in the terms.
They may sell the home
Selling the home is the chosen option for some people. If the home has equity, that might be used to pay off marital debts, which may enable both parties to be in a better financial position after the divorce.
Co-own the home
A third option is co-owning the home. This may allow a parent to remain in the home with the children. Alternatively, they may use the home as a rental property. In these cases, having a contract between them can help to prevent future issues.
Having someone who’s familiar with property division may be beneficial for individuals in this position. This offers a way they can find out the options and how each may affect them.