People who are going through a divorce have to determine what’s going to happen to the marital home during the property division process. This is often the biggest asset that has to be handled, so there are several things that must be considered.
Before discussing the marital home, the property must be appraised so both parties have an idea of where it stands financially. The balance of the mortgage must be considered if there’s one that’s still open on the property.
Selling the home
It may be beneficial for both parties to agree to sell the home. If it sells for more than the balance of the mortgage, the excess can be used to pay off debts or it might be split between the parties.
Other options for the home
It’s also possible that both parties will continue to own the home jointly. This is often the case if it can be rented out or if the house will be used for the children. If this occurs, there should be clear documentation about how various factors, such as the expenses of the home, will be taken care of.
Alternatively, one party may buy the other party out of their share of the home. This may require the purchasing party to obtain a new mortgage for the property.
Anyone who’s going through a divorce should ensure they understand what options they have for every aspect of the property division process. Learning how each of those options may affect their future should be the first thing they do before they start to divide the marital property.