When going through a divorce, asset division often takes up a big portion of your legal concerns. This is also often one of the most time-consuming aspects of divorce, especially if you have a lot of property or high assets.
But even dealing with a single house can cause you a lot of hassle. How do you even divide a house in divorce? After all, cohabitation is not an option most couples want.
Forbes looks at how to divide your house during a divorce. There are several ways to handle this matter. First, you could actually maintain joint ownership of the house. This does not necessarily mean both parents need to inhabit it at the same time. You can split payments like mortgage, major repairs and home improvement costs. This option often serves families with children if you do not want to move them from their home until they hit a certain age.
Buying out a spouse
Next, one spouse can buy out the other. You must determine the current cost of your home, which you need to calculate the buyout price. You can also decide if you want to adjust this for the possibility of future inflation, capital gain or selling expenses. This will remove the selling spouse’s name from the deed. However, it may stay on the mortgage.
Dividing the proceeds
Finally, you can sell your home and divide the proceeds. This is often the easiest and cleanest way to split the equity provided by your home. You need to ensure you have a stable enough financial and credit situation to purchase a new home. You also need to be aware of the possible taxes on capital gain. As all three options can come with potential complications, you may also want to consider contacting legal help to give you aid as you make your decision.