If I’m Divorcing, Do I Have To Sell My House?
Your house is often more than one thing. It is a large financial asset, but it is also your home, a place that you have remodeled to your preferences and made memories with family and friends. When you and your spouse bought your marital home, the two of you may have discussed living in the home for the rest of your lives. With so much emotional weight and financial value, it makes sense that the marital home can be a point of contention when a couple decides to divorce.
There are a few different ways to settle a marital home during the divorce process. Whether your goal is to keep a marital home in Pennsylvania or sell a primary property in New Jersey, share your post-divorce objectives with a Bucks County family attorney. Then, your lawyer can work to make your aim part of the final divorce agreement.
Selling the Home and Splitting the Profits
Making the decision to sell a primary marital property prior to divorcing can save both spouse time and energy. This is because it takes care of a couple issues at once, such as the mortgage being settled and there being no need for one spouse to buy the other out. The house is sold and then there is cash, money that can be escrowed and dispersed later.
But in order for this sell-first plan to be effective, both individuals have to be committed to this strategy. This means staying officially married until the paperwork is confirmed and neither individual changing their mind and avoiding signing final documents. When there are mixed feelings, this strategy will not streamline the process and could lead to more confusion.
Buy Your Spouse Out and Keep the Home
If you want to keep the home, buying out your spouse could be of interest. In these situations, you must provide your spouse with their equity in the home.
For instance, if the home you want to keep is worth 400k and you and your spouse still owe 300k, then the equity within the home is 100k. As a result, you’d pay your soon-to-be-ex spouse half of that shared equity, or 50k, in this example. Accepting a buyout means the individual will miss out on any future appreciation, but it also means that the individual keeping the house is taking on the responsibilities of owning and maintaining the property.
Be sure to talk to a Bucks County family attorney before agreeing to buy out a spouse, accepting a buyout, or liquidating your primary residence. A skilled lawyer can inform you of pros and cons to each choice.
Do you have mixed feelings about selling or retaining your marital home? Speak with an attorney to talk through possible real estate scenarios. To have your questions answered, reach out to the legal team at Kardos, Rickles & Hand. Because our attorneys have extensive family law experience, a variety of resolution options can be explored, analyzed, and considered. To get started, schedule an initial, no-cost consultation call 215-968-6602.