When you divorce, you’re probably not going to want to continue to live under the same roof as each other. So you will need to decide what happens to your house.
If it’s rented, you can both just move out. If one person entered the marriage already owning the property, there’s a good chance they’ll keep it in the divorce. But things get more complicated if you own the house between you. Here are a few options:
1. Sell it
By selling it, you can clear any remaining mortgage and add what money remains to the rest of the assets to be divided. That can help to make for a clean break. Yet you need to assess the current market to see if it’s a good time to sell or whether you’re better off holding off until prices rise.
2. One of you buys the other out
If one of you wants to keep the house, you may be able to do so by ceding a larger share of other assets to the other. With this option, you should be sure the party keeping the home will be able to afford it, as paying a mortgage and other bills for a family home can be taxing on one salary.
3. You both keep it and rent it out
This can be a good option if your house is currently worth less than you paid for it. Renting it out can bring in enough money to pay the mortgage, so it’s not a financial burden. Once the market picks back up, you can consider selling. If you have already paid for the house outright, you could just split the rental income each month or use it to fund something like your children’s education.
There’s a lot to consider when planning a divorce. Legal guidance can help you make effective decisions about your home and other property.