If you are filing for divorce, you may wonder what options you have for your home. After all, this is probably the biggest marital asset you have. You have a few options to consider regarding your marital home. You should choose the option that best suits your needs and situation:
1. Sell your home and split the profits
A preferred option for many divorcing couples is to sell the house and then split the equity. When you sell the house, you are essentially “untangling” yourself from your partner. You can both find other living arrangements and leave the home in the past.
2. One person keeps the house
If you or your spouse wants to retain ownership of the house, you can refinance the mortgage in your name only (or they can do this in their name). When you refinance, your spouse’s name is removed from the mortgage, it pays the existing mortgage debt and you can receive cash to buy your spouse’s share of the equity.
3. You both retain ownership of the house
You may realize it is not a good time to sell the home. For example, you may owe more than it is worth. In other situations, you may be able to afford separate homes. In these situations, you can maintain joint ownership of the house. One spouse will move out and still pay the mortgage while your children are in school. Usually, having children is the main reason couples choose this option. You have several options when it comes to dealing with your marital home. Be sure to consider these and your legal rights to determine which one is best for your situation.