Divorce can be a complicated process for many couples in Buffalo. One of the biggest challenges some couples getting divorced face is deciding what to do with the family home. Should one person remain living there or would it be better to try to sell the house?
Property division can be a complex issue for many couples going through divorce. It can be an emotional and frustrating time trying to figure out what should happen to the shared home once the divorce is finalized.
What options are available for couples getting divorced who own a home together? There are a few different options divorcing couples should consider during property division negotiations before a final decision is made.
One option is to sell the home and split any profit from the sale. This can be a difficult decision to come to but it may be easier since both individuals will no longer be living the house or be responsible for paying the mortgage and other costs associated with owning the home.
Couples thinking about selling the house should become familiar with the current housing market to see if it is possible to sell the home for a profit. If the house is not worth as much as what’s left on the mortgage, it may not be best to try selling the house right now.
Another option is for one spouse to refinance the mortgage and continue living in the house. This option allows one spouse to be removed from the mortgage and not be held liable for making any mortgage payments after the mortgage is refinanced. Spouses who decide to refinance the mortgage on their own usually pay off their ex’s portion of the home’s equity.
This option is good for individuals who want to continue living the home but they should be aware that they will have to meet certain requirements when applying to refinance the home and their application has to be approved by the mortgage lender before the mortgage will be changed.
There are a few other options spouses can consider but selling or refinancing the home are the most common options available for couples getting divorced. Individuals getting divorced who own a home with their spouse should consult their divorce attorney about their options and what steps to take to make the property division process go as smoothly as possible.
Source: Loan Safe, “Mortgage Options While Going Through a Divorce,” Evan Bedard, July 14, 2013