Going through a divorce means having to determine what happens with all of the assets, the largest of which is usually the home. It is also usually one of the assets that has the biggest emotional attachment for one or both parties. This can make it difficult to determine how to handle “dividing” it.
There are two primary options to consider when trying to decide what to do. Considering the logical and financial aspects of each option is beneficial, even if they don’t match what your emotions want.
One party buys out the other
One of the more common options for dealing with the marital home is for one party to buy out the other party’s equity in the home. This can be done through a cash transaction or a transfer of other assets. The party who keeps the home will need to refinance it and take the legal steps necessary to establish sole ownership.
Sell the home and divide the proceeds
Another option is selling the home. This requires a proper appraisal, as well as an agreement on the sale terms. Some people prefer this option because it gives them the ability to pay off the mortgage as well as other bills or just be able to walk away with cash.
Remember, the marital home is only one part of the property division process. You also have to determine what to do with other assets as well as debts. Because this process can be so complex, it is best to have experienced legal guidance as you consider what choices are in your best interests.