Divorce - What you need to know about your house

There are 4 options when you are in the middle of a divorce:

1. Sell the house now and divide up the proceeds -

 As you get your financial affairs in order, be sure to understand what the net proceeds will be and determine that your split of the proceeds will be. Be sure to realize that it may not bea 50/50 split but rather will depend on thedivorce settlement, source of original downpayment and property laws in your area

 

2 Buy out your spouse -

If you wish to keep the house, you will have to figure out your financial obligations now that there will be only one salary. If you used both incomes to qualify for the original loan on the house, refinancing on your own may be a challenge.

 

3. Have your spouse buy you out -

If you are the one leaving the house, you may be able to start somewhere new with some money in your pocket. Be aware that if the house is not re-financed by your soon to be ex spouse, most lenders consider both of you liable for the mortgage. This liability can make it extremely difficult for you to purchase a house on your own.

 

4. Retain joint ownership -

Some couples decide to postpone this financial decision for a period of time even though only one spouse lives in the house. While this situation means you have no immediate worries in regard to selling the house, keep an eye on your tax considerations from the time of the divorce to the time of the sale of the house.

 

This is for informational purposes only and is not intended to replace individualized legal advice. Always seek professional legal counsel for your legal issues.

Bob Gliwa

Bob Gliwa

Broker Agent
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