When dealing with divorce, asset division often causes the most trouble. This is especially true if you have a large amount of assets, like multiple properties or bank accounts. Even one single house can cause you trouble, though.
One of the first questions you may have is: how do we divide our house in a split? Fortunately, there are many options you can consider.
Selling or buying the property
According to Zillow, there are several ways to divide a house during divorce. The first and easiest way is by selling the property and dividing the gains equitably between you and your spouse. This is the cleanest division, but it is not always financially sound. It depends on many factors, like whether you have the credit standing to buy a new home and whether it is a buyer or seller’s market.
Next, one party can buy the other out. You must appraise the current worth of your house to get the buyout price. You may also want to adjust the rate for future inflation, profit or costs that might go into the future sale of the home.
Third, one party can keep the house in exchange for giving up a larger sum of their assets. This requires a deep understanding of the cost of homeownership and whether or not it is worth it to try maintaining a home alone.
Finally, you can remain co-owners of the home. This is a popular option for families with young children. You split the mortgage payments and when the time comes to sell the home, you split the profit as well. If you want to learn more about your options, consider contacting legal help.