In many divorces, the family home is the couple’s largest asset. One of the most important decisions you’ll make is what to do with your house.
SELL THE HOUSE
If you aren’t able to – or don’t want to – stay in your home, you can sell your home and try to maximize your profit. Typically, once the house sells, you and your spouse will split the profits based on your settlement. It’s important that you work with a qualified real estate agent to help you avoid common mistakes when listing your home that can lead to decreased profits. An agent will also be able to help you determine what your net proceeds will be after all expenses are taken into consideration.
NEGOTIATE A BUYOUT
A buyout is when one spouse releases his or her interest in the house in exchange for cash. In this scenario, it’s important to work with a mortgage banker to determine your ability (or your spouse’s) to refinance the loan. Typically, the original mortgage is paid, and then a new loan is made where only one spouse is listed on the loan and the title of the home. The cash proceeds from the loan are then available to buyout your spouse.
Sometimes it makes more sense for you to continue to co-own the home. These situations usually have very clear terms and arrangements to help mitigate any potential issues down the road. Agreements for this situation can have a predetermined amount of time for co-ownership or can last indefinitely.
ANSWERING THE TOUGH QUESTIONS
Questions to think about when determining what to do with your home:
- Is refinancing an option?
- Is it better to sell your home and purchase another?
- How much house can you afford with your new budget?
- Do you have the ability to do your own maintenance on your home?
- Are you more comfortable in familiar surroundings, or do you prefer a fresh start?
WHERE DO I GO FROM HERE?
We understand this may be a very difficult time, and you have many financial decisions to make. The next step is to connect with a licensed mortgage banker who has experience working with people facing a divorce, so that you have the answers you need to make informed decisions.
Our initial process provides a:
- Free credit analysis and report
- Free mortgage analysis and strategy review