3 options for the marital home during divorce

On Behalf of | Dec 7, 2023 | Divorce |

When couples go through a divorce, one of the most significant decisions they face is what to do with the marital home. This decision can have far-reaching financial and emotional implications. 

There are three main options to consider for individuals who are working through property division of the marital home:

Sell the home

Selling the marital home is often the simplest way to resolve property issues in a divorce. This involves putting the home on the market and splitting the proceeds between parties. It provides a clean break financially, allowing both individuals to start fresh. 

Buyout of the home

In a buyout, one spouse purchases the other’s interest in the property. This allows one party to keep the home, which is often beneficial if children are involved. The buying spouse typically pays the selling spouse half of the home’s equity value through cash, relinquishing other assets or refinancing the mortgage. Getting an accurate home appraisal is crucial.

Co-own the home

Some ex-spouses choose to co-own the home for a period after the divorce. This is particularly useful if they want to maintain stability for their children. In this arrangement, both parties retain ownership and continue to share responsibilities for the mortgage, taxes and upkeep. Co-ownership agreements should be detailed, outlining responsibilities and plans for eventual sale or buyout.

Each of these options comes with its own challenges and benefits, and the best choice depends on the couple’s unique financial situation, emotional readiness and future goals. Consulting with professionals familiar with your situation can provide valuable guidance in making this critical decision.

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