One of the most significant assets that divorcing couples typically need to consider is the family home. Not only is this an emotional decision, it can also have a significant impact on their future housing and financial stability. What options do couples often have when dividing their home?

Sell the house

One of the most straightforward options is to sell the home and divide the proceeds according to what the court decides is equitable or fair. This choice might be particularly appealing if neither party can afford to maintain the home on their own, or if both individuals wish to start fresh elsewhere.

Selling the home can provide each person with the money they need to start a new chapter of their life. However, it is important to consider the real estate market and whether it is a good time to sell.

Arrange a buyout

If one spouse wishes to remain in the home, they might choose to buy out the other’s share. They can do this by refinancing the mortgage to release equity and pay the other spouse their share, or by giving up their claim on other marital assets of a similar value.

This option can offer emotional and practical benefits. This is particularly true when children are involved, because it can provide continuity and stability. However, it is crucial that the buying spouse has the financial capability to afford the home independently.

Co-own the property

Some couples choose to share ownership, even after the divorce. This option requires a high level of cooperation and clear agreements. Co-owners will need to consider how they will manage expenses like the mortgage and taxes as well as maintenance tasks.

Defer the sale

Another option is to agree on deferring the sale of the home to a later date. This option allows couples to wait to sell their home until they can fetch a better price. Some couples also choose to keep their family home until their children are a certain age.

In this scenario, couples should clearly lay out details of their shared ownership today and how they will manage the sale in the future. This includes considering who will live in the house, how they will share expenses and the way that they will divide the proceeds when they eventually sell the home.

Deciding what to do with the family home during property division can have a significant emotional, financial, and practical impact on a person’s life. By carefully considering all options, divorcing couples can make informed decisions that pave the way for a stable and positive future.