Your house is the biggest asset that you own, and your spouse just filed for divorce. You know that it’s time to divide assets, but you can’t exactly split a home in half the way that you can with a bank account. So what should you do?
This is a very common question, and there are a few solutions that you can consider.
Buying half of the home
First off, you can buy the other half of your own home from your former spouse. This is an easy way to keep the house if you can get a loan to buy out their investment. If you’re willing to give up other assets, they may even allow you to buy their portion for less than it is worth.
Keeping the home together
In rare cases, it may make sense to keep the home together as co-owners. For instance, you may feel that you’re in the middle of a market dip and you don’t want to sell right then, so you hold on to the house for a year and sell in the future.
Selling the home and splitting the money
As implied above, a third option is to sell the house, and this is probably the most common course that people take. Once you sell the home, you can pay off the mortgage and keep the money that you’ve earned. This money can then be divided between the two of you.
When property division gets complicated, especially with so much money on the line, it’s very important that you understand all the legal steps you can take.