As a divorce real estate expert, one of the questions I regularly get asked is, are you required to sell your home during a divorce? There are many considerations when it comes to answering this question, such as whether one of you wants to remain in the home, so today, I’m going to discuss this topic further to help you make the right decision during your divorce.
Remaining In Your Family Home
Many couples find that one partner wants to remain in the family home, especially if they have children who are happily settled there. However, there are many considerations to take into account before deciding if this is something that is feasible for your family. One of the spouses will need to be able to afford to buy the other spouse out of the home. This is why so few individuals end up staying in their family home following a divorce, and instead, they choose to use divorce real estate experts to put their property on the market. From there, you can divide the sale of the house between the two of you, which you can then invest in a new home.
When it comes to deciding if you are going to sell or remain in your home, you need to keep in mind that you’ll also have to pay off the mortgage and any brokers’ fees. Capital gains tax may also need to be accounted for, and these costs are often considered a disadvantage of selling. However, many couples find they are ready to start a new life and step away from the memories of their current home. We understand that selling a home during a divorce can be an emotional challenge, but a good divorce Realtor will support you through every step of the process.
Options for Remaining in Your Current Home
If you are still adamant about remaining in your current home, there are a couple of options you could consider. Firstly, you could think about transferring the title of the house, and you can then use cash reserves or retirement accounts to buy the house. You’ll need to ensure you have sufficient funds to complete this process while also not damaging your current financial situation too greatly. However, you will need to refinance your mortgage if your current one is held in both of your names. This mortgage will therefore be based on your personal income, so you’ll need to ensure you have enough funds coming in to prove you will be able to finance this alone for the foreseeable future.
For couples with children who are looking to finish school in their current area, you may consider a deferred sale. This will temporarily delay the sale of your home, and for many couples, this is the most sensible option to avoid disrupting their children’s education. Both partners will share the appreciation in the value of the home between the time of your divorce and the sale.
Most couples today find selling their home during a divorce to be the best route to take. For more information about this process, don’t hesitate to contact me today.