The divorce process can be challenging and divorcing couples who are going through the property division process are no strangers to that. One portion of the property division process that may cause particular concern is how a family home will be divided during the divorce process which is why divorcing couples should know the different ways that concern may be addressed.
How a family home is divided during divorce
One spouse may want to keep the family home for a variety of reasons. Both spouses may agree that one spouse should remain in the family home until minor children from the marriage are grown and gone. Alternately, both spouses may agree it is best to sell the home and share the proceeds as part of their property division settlement agreement.
Depending on the preference of the spouses, there are generally three options they may wish to pursue to divide the family home during divorce. The first option is to simply sell the family home and share the proceeds. Both spouses will need to secure alternate housing and the process may be delayed if the home does not sell right away.
Another option is for one spouse to buy the other spouse’s interest out. The spouse buying out the other spouse’s interest in the home will stay in it and will likely need to refinance the home to remove the other spouse from the mortgage. The spouses will need to have the home valued and a structured settlement may be developed if the purchasing spouse does not have the liquid assets to buy the other spouse out.
A final option is if both spouses agree to continue to own the home jointly while one spouse remains in the home raising the couple’s children as an example. How mortgage payments and other household-related expenses will be paid will need to be worked out between the spouses. There are different options available to help divorcing couples address the oftentimes troublesome concern of what to do with the family home during divorce so they can decide which option is best for them.