One major topic of contention during a divorce is the fate of the family home. While selling the property may seem like the only choice for divorcing couples, Zillow notes that other available options may allow one or both of the spouses to keep the home.
By examining the advantages of continued ownership of the home, divorcing couples can choose a course of action that best suits the circumstances of the upcoming split.
Negotiate a buyout
If one person in a divorce wants to keep the house but the other wants to sell, then a buyout can satisfy the wants of both. The individual who wants to keep the family home can buy out the other for half the market value of the property. This may have several advantages for the spouse who keeps the home, including:
- Stability for the children
- Avoiding the stress of selling a home
- The ability to maintain local ties
If a bank still owns the family home, the spouse entering into a buyout agreement should consider how mortgage payments will affect his or her financial situation after the divorce.
Maintain dual ownership
If neither spouse can afford a buyout, both might consider keeping the home and working to pay down the mortgage until they satisfy the debt. This can provide less physical and emotional upheaval for any children.
A divorcing couple who chooses to sell their family home may want to keep tax payments and other fees in mind and make decisions regarding those costs before putting the home on the market.