The good thing about having your own home is that you have options according to your specific situations. For instance, if on a brink of divorce, you:
- Can sell the house and divide the profit
- Purchase the Other Out
- Stay the in the House
Now that you know you have these options, your next question might be “how can you decide which of these choices is best for you?” and that’s what this post is about.
So if you want to know whether to sell, buy, or hold on to the house in a divorce, just keep on reading.
Choosing Whether to Sell Your Home During a Divorce
To begin with, the choice on what to do with the house is largely dependent on the individuals divorcing. If you're not sure whether to sell your home to a buyer or go another route, consider the following questions for yourself:
What kind of revenue is needed to maintain a home instead of selling one?
For instance, is there still a mortgage balance? What are the insurance and/or taxes? Does the house need to be updated soon or is it older and needs more frequent maintenance?
If neither of the owners can afford to maintain the house alone, selling it becomes a simpler decision. The expense of keeping the house helps determine which individual can afford to keep it.
Children's Needs:
Before anything else, a conjugal family should prioritize their kids’ needs first. To prevent upsetting their children even more, couples may choose to keep their joint home ownership. Think about plans, locations, and school districts. If your kids aren't in school yet, it might be beneficial to relocate closer to a better school district.
Furthermore, think about whether it would be better for the kids' mental well-being to start over in a new environment or to attempt to keep changes to a minimum. Although every scenario is unique, many people choose to utilize their house as their children's anchor or source of security.
How to Assemble the Mortgage
When divorcing, many couples who had a combined mortgage decide to arrange it so that only one partner's name appears on the mortgage. One advantage of this is that the person who remains in the home is not dependent on their ex-partner to pay the mortgage.
Second, without their name attached to the mortgage of the house the couple owned together, the individual taking their name off the mortgage will have a higher borrowing capacity for a new residence. Last but not least, since it eliminates joint debt, taking one person's name off the mortgage can help loosen the bonds that bind your credit. When two people have joint debt, the credit of one can be impacted by the debt of the other.
As previously indicated, income needs will ultimately aid in determining what is best for the house's future. Speak with a mortgage lender first so they can determine exactly what you can afford if you're thinking about becoming the only owner of the house instead of your ex-spouse. You might be able to obtain a "guarantor mortgage," in which a member of your family promises to make the mortgage payments if you are unable to.
The Benefits of RE/MAX Advanced Realty
RE/MAX Advanced Realty can assist if you and your spouse have attempted to separate but have not been successful in reaching a mutual understanding. We frequently purchase homes from individuals who want to sell their homes quickly and with less discussion and haggling than in a typical transaction. For a free, no-obligation quote on your house, give us a call at today!