One of the biggest financial decisions that many people must make as they navigate the divorce process is what will be done with the house. Whatever decision is reached, it will almost certainly have a substantial impact on your life. While some couples decide to sell the house and split the proceeds, other couples decide that one spouse should be given the house in exchange for giving something else up in the divorce.
If you have children, you might decide that keeping the house is the best way to reduce the impact that divorce has on the child’s life. Whatever you decide to do, it can help greatly to understand some tips about how to increase your chances of keeping the house after a divorce.
Decide on the Price of the House
The best place to begin is by deciding on the price of the house. Because divorce involves the division of assets, it helps to know the value of the house. Agreeing on a fair value for the home is often a difficult process. This value is often determined based on the total amount of equity that you as a couple own in the property.
In addition to deciding on the house’s value, it also helps to determine early on who will be tasked with paying off certain debts and who will be responsible for taxes associated with the house. After deciding how much a house is worth, you can make a decision about whether you will be able to purchase the house outright.
Consider How You Will Purchase the House
After deciding on the worth of the home, you should make a decision about how you will be able to purchase the house on your own. Some of the options you might consider include getting the money together from personal assets, borrowing the money from the bank, or borrowing the money from friends or family members.
Some people decide that the best option is to give a spouse share in another marital asset like a retirement account in exchange. While you might be able to afford the house by giving up other things, you should avoid giving up all of your assets in the process. If you decide to borrow the money from a financial institution, it is critical to consider the long term obligations that accompany a loan.
If you are not able to think of any option to pay for the house, you might have to accept that it is not possible to retain ownership of the house. Even while divorce can be challenging, you should avoid agreeing to something that will place an extra financial burden on you during this difficult time.
Speak with an Experienced Divorce Attorney
Deciding what to do with your house is just one of the challenging decisions that must be made during a divorce. If you need assistance during this difficult time, do not hesitate to contact an experienced attorney at Vayman & Teitelbaum, P.C. today.