Going through a divorce can be emotionally taxing, and when it comes to dividing assets, things can get even more complicated. One of the most significant assets couples own is their home, and deciding its fate can be particularly challenging. Here’s a breakdown of your options and what to consider for each.

1. Sell the House and Split the Proceeds

Deciding to sell the home and divide the proceeds is one common approach couples consider.

Pros:

• Clean Break: Selling the house offers a fresh start for both parties, eliminating emotional and financial ties to the property.
• Simplicity: This approach provides a straightforward division of assets, simplifying the overall property division process.

Cons:

• Market Dependency: The selling price might be lower if the housing market is down.
• Additional Expenses: Costs associated with selling a home can include agent commissions and potential repairs.

You can also decide to sell the home, but you should do so at a later date if possible if you’re currently in a down market.

2. Buy Out the Other Spouse’s Share

For some couples, it makes sense for one person to buy out the other’s stake in the property, especially if one party wishes to remain in the home.

Pros:

• Continuity: If one spouse has a strong emotional attachment or if there are children involved who’d benefit from staying in the home, this option offers stability.
• Financial Gain: The buying spouse can capitalize on future appreciation of the property.

Cons:

• Refinancing Challenges: Refinancing the mortgage solely in the buying spouse’s name may pose challenges.
• Potential Resentment: Significant property appreciation after the buyout could lead to friction or regret.

If you want to buy out the home and are worried about refinancing, know that it is possible to use a co-signer to secure the mortgage.

3. Co-own the Property

Choosing to co-own the property post-divorce is an option that requires both parties to remain amicably connected for the sake of the shared asset.

Pros:

• Time: This can be a temporary solution, allowing time for a more favorable market or personal conditions.
• Shared Responsibilities: Both parties share ongoing costs, such as maintenance, taxes, and other property expenses.

Cons:

• Ongoing Connection: Requires continued communication and decision-making cooperation.
• Potential Disagreements: Differences can arise concerning property-related decisions.

If you are still on good terms with your spouse, co-owning the property is a viable option for both of you. However, it may not be best if you don’t get along with your spouse and want to make a clean break.

4. Use the House as a Nest for the Children

In an effort to provide children with stability during the upheaval of a divorce, some couples opt for a nesting arrangement.

Pros:

• Stability for Kids: Children remain in the home, with parents rotating in and out according to the custody agreement.
• Delayed Decision: This allows for more time to decide the best course of action for the house.

Cons:

• Logistics: Managing schedules and having alternate living arrangements can be complicated.
• Prolonged Financial Connection: Financial ties to the property continue for both spouses.

Ensure you select a time to sell the home when it makes sense for both of you down the road. For example, many couples decide to sell after the children finish high school and leave for college or the children have completely moved out.

Choosing how to divide a house during a divorce involves careful consideration of personal, financial, and emotional factors. Seek guidance from legal professionals or mediators who can offer advice tailored to your unique situation.

Are you navigating this decision? North Metro Litigators can guide both parties to an equitable and agreeable resolution.