How to decide what to do with the family home as you divorce

How to decide what to do with the family home as you divorce

On Behalf of | Jun 14, 2021 | Divorce |

With divorce comes many various complications. Deciding what to do with your home is one of those stressful situations you have to deal with.

Most spouses are unable to afford a home independently, given the high cost of houses these days. It may be challenging for anyone to qualify for a loan on their own as well. You may feel like you’re between a rock and a hard place in your real estate situation. Fortunately, you have options.

Divorcing couples have to decide what to do with their home. If one spouse wants to remain in the home, they have to sort out whether they have the means to do so. If they don’t, then their spouse’s name may have to remain on the deed. They may not agree to that.

What you should know if you sell the home

If you two decide that selling your home is the best option, then you’ll need to start preparing for your move. Your income or credit will likely affect what choices you have.

You may want to steer clear from moving out too quickly. Doing so means you’ll be on the hook for making rent or mortgage payments all of your own right away. Also, buyers tend to prefer staged homes. It will be vacant if you move out too quickly, which may affect any offer you receive. A vacant property may leave your property vulnerable to looters, decreasing its value as well.

You may also want to consider capital gains taxes as you decide what becomes of your home when you divorce. You may be expected to pay a significant tax rate depending on the value and length of time you’ve lived there.

Sorting out the pros and cons of making certain real estate choices in a divorce can be challenging. An attorney may be able to assist you in honing in on the factors you need to weigh as you look to make a decision that is right for you.