Deciding what to do with a family home during the property division process may fill divorcing couples with anxiety. Once a couple has made the difficult decision to divorce, familiarity with the different options to address a home during property division can help the couple resolve their understandable concerns.
Property division options for the family home
In general, divorcing couples will address property division concerns according to the priorities they set and negotiate. This is also true when dividing a family home. The following are some options that divorcing couples may want to consider when dividing a family home.
The couple continues as joint owners of the home
The divorcing couple has the option to continue as joint owners of the home. This may be an option they consider and elect if they have minor children and one spouse wishes to remain the home with them until they are grown. If the divorcing couple selects this option, they should work out a plan for how household-related expenses will be shared.
One spouse buys out the other spouse
The divorcing couple has the option for one spouse to buy out the other spouse and keep the family home. If one spouse buys out the other spouse’s interest in the family home, the divorcing couple should keep in mind it is likely they will need to refinance the home to remove the spouse who is being bought out from the mortgage.
The divorcing couples sells the family home and divides the proceeds
The divorcing couple has the option to sell the family home and share the proceeds from the sale. If the divorcing couple elects to sell the family home, they will each need to secure alternate housing.
Property division can be at the top of the list of concerns for many divorcing spouses. Knowing what to expect can help divorcing couples navigate their property division concerns, including what will happen to their home during divorce.