For many couples, their home is the biggest asset they own. This means that it might become a source of contention during a divorce. There are several things that may happen with the home if you’re going through a divorce.
Thinking about what factors impact your situation might help you to decide what you should do with the marital home. Here are a few that you should consider:
What are the options for the home?
Some people decide to sell the family home before the divorce, which is a good option when there’s already a lot of equity built up in the place. This is because of the capital gains tax. A married couple would be able to reduce the amount that’s taxed by more than a single person.
It’s also possible that one spouse will buy out the other. This isn’t necessarily done with money. Instead, it can be done using other assets to offset the value of the home. While unusual, some people opt to continue to maintain the home together. This requires them to split the expenses of running the home.
How can you determine if you can keep the home?
If you think that you want to buy out your ex’s share of the home or work a deal out so you can keep the house, make sure you can afford it. You’re going to have to support the home on only your income. Think about how these expenses related to the home might impact your finances:
- Mortgage payment
- Homeowner’s insurance
- Maintenance and repairs
- Property taxes
Be sure that you think about all the options you have for every aspect of property division. This can be challenging if you have a high-asset or complex case. Think about the long-term and short-term implications of every option you have.
