Divorce is a time of significant change, and one of the most poignant symbols of that change is the family home. It’s not just a building. It’s the place where you have built memories, found comfort and invested both effort and money to make a home. Understanding what can happen to your family home during a divorce is crucial for planning your next steps and making informed decisions.
What options might you consider when determining what will happen to your home after you finalize your divorce?
You may sell your home and divide the proceeds with your other assets.
Often, selling the family home and splitting the proceeds between both parties provides a straightforward solution with financial benefits. While this option provides closure and a clean break, it can be emotionally challenging to let go of a place that’s been central to your family’s life.
One spouse may buy out the other to move forward as the sole owner of the home.
If you or your ex want to keep the home, you may have the option to buy out the other’s share of your savings or by sacrificing a portion of other assets during property division. However, the spouse who keeps the home must be able to afford the mortgage and other related expenses on their own.
You may continue to own the home together.
Divorcing spouses might agree to maintain joint ownership of the home in some circumstances. For example, you may agree to co-own the home until your children reach a certain age to provide stability for them. You may also continue as co-owners temporarily while you arrange a sale or buyout. In this case, the judge may allow one spouse to live in the home before it’s sold or while they arrange their finances to buy the home.
It is important to remember that co-ownership brings its own challenges. It requires you to cooperate with your ex. You must also agree about how you will address costs like mortgage payments and the cost of maintaining the property.
The decision of what to do with the family home during a divorce is not just financial; it’s deeply personal. Seeking guidance and carefully considering your situation can help you reach a solution that aligns with your wants and your unique financial situation.
