During a divorce, you and your spouse will need to split any marital assets. You will either work out a plan with your spouse that you both can agree on, or a judge will split your assets for you. One of the most valuable assets that will come up for division is your house.
Depending on your situation, you will either want to keep your house or sell it and split the money you get from it. The decision you make will depend on several different factors unique to you.
Selling the house: a simple solution
The simplest option you have for splitting the value of the house is to just sell it and split the money your get. This option gives you an exact value of your home. You can easily pay off the mortgage and then divide the remaining equity. However, selling your home may not always be the best choice.
Keeping the house: what to consider
If you and your spouse have been together for a long time, your house likely has more than just monetary value. If you have children, a house is their stable home. Having parents divorce is already difficult for children. You may want to make sure that they have the stability of staying in their home while they process the divorce.
The monetary value may also be important as well. When you and your spouse break up, the two of you may not be able to afford separate homes that both adequately fit your family.
However, deciding on who gets the house and how can be difficult. You and your spouse may both think that you have equal claims to getting the house. And if you get the house, you may have to give up other high value assets in the divorce like retirement accounts or stock options. Or you may have to try and buy out your spouse’s half of the house, putting you in debt.
A difficult decision
Splitting the assets in a divorce is always difficult. For most couples, a house is the most valuable asset they will split in divorce. And a family home will have both monetary and emotional value to it.
Whatever decision you make will need to be right for you and your family.