Over the course of your marriage, chances are, you and your then-partner amassed a number of assets together, but once you make the choice to part ways, you need to figure out who is going to keep what. For some former couples, asset division proves relatively easy and painless, while for others, it may take months or even longer to figure everything out. If you and your ex owned a home together while you were married, you are going to need to determine what to do with any equity you may now have in it.
According to NerdWallet, you have a number of different options as far as splitting up the equity you have in your home when you divorce. However, most people in your shoes choose to do so using one of three common tactics. The first, and arguably simplest, option of dividing home equity simply involves you putting the home on the market and then splitting any profits you make on the sale evenly between you.
However, certain circumstances may warrant you considering other options for dividing your home equity. If you or your ex want to stay in the home you once shared after your split, that person needs to refinance the mortgage to exclude the other party. Once the home is no longer jointly owned, the party who wishes to stay should be able to buy out the other’s share of the equity.
A third, and decidedly less common, option involves maintaining joint ownership of the home for the time being. If the housing market is bad in your area, it may serve you well to wait to put the home on the market. You do not necessarily have to live alongside your ex if you choose this option, though. You could, if finances allow, potentially take turns living in your once-shared residence until the market improves enough to sell it.
