What happens to a family home in a divorce?
When divorce is imminent, people tend to worry about the children’s future, how to treat the mother-in-law who was so nice (lucky fellow), how their friends will react. Of course, these should be at the top of one’s mind. There are many concerns to worry about.
Beyond family concerns, finances and real estate are important also. Figuring out who gets what and how much can get messy, antagonistic and litigious. That is why an attorney should be consulted on these matters.
But what about the marital home? There are various options and outcomes. Sometimes the agreement is amicable. However, there are many times where spouses disagree and rely on their legal counsel. Sometimes, the court steps in and appoints a trustee to determine the disposition of the home.
It’s common for one party to offer to buy out the other’s interest in the home. But in doing so, coming up with the money may be a challenge. “Cash-out” refinance and home equity lines are sometimes a solution if the spouse meets the lender’s underwriting guidelines. Of course, if the home has no equity, then relying on a cash-out refi may not work.
Selling a home is emotional and stressful. Selling a home during a divorce can compound the stress. It’s important to be as objective and fair as possible when making decisions about the marital home. If you are selling your home, hire a professional Realtor who is objective and adept in handling such sales. Consult with an attorney on matters of separation and divorce.
by Dan Krell © 2005
Copyright Dan Krell 2005.