In some divorce scenarios, there are actually three decisive parties: the members of the unhappy couple and their house. In fact, many parting couples who have emotionally checked out of their relationship would say they remain married to the house.
Deciding what to do with a house in the midst of a divorce is arguably one of the toughest hurdles in an already challenging situation. Unfortunately, there are no easy solutions. But by keeping the following points in mind, you may be able to come to an agreement you can live with.
Instructions
Decide Who Gets The House
1. First, consider your options. Generally, you can either sell the house before the divorce is finalized, sell it after the divorce is final, transfer ownership to one of you ("buying out" the other), or maintain a long-term interest in the house. Your financial state, the housing market, your relationship with your soon-to-be-ex and the size of your family will all factor in to your decision.
2. If you are considering keeping the house, ask yourself whether you can stay married to the mortgage. Sentimental value adds nothing to a balance sheet. The house is an asset, and if one of you cannot afford it on his or her own, the answer will be clearer.
3. If your spouse will be keeping the house, ensure you are getting your fair share of the accurate value of the property. Work with an experienced, licensed appraiser of your own.
4. When selling out your share or buying your spouse's half, you may want to tap into retirement savings (but borrow, don't withdraw), or suggest some options for division of other community property like furniture, art or vehicles to balance the scales. Again, make sure you are comfortable with the assessed value of the property.
5. Selling your house before the divorce is finalized can make for an easier division of assets but is not always an available option, particularly in today's housing market. However, if this is an agreeable option for both of you and there is market interest in your home, try to work together to make a reasonable sale happen. Even if you sell your property for less than you would have liked, you will avoid months of taxes, utilities, upkeep and potential repairs.
6. In a very challenging housing market, consider creative options for putting off the sale or division. For instance, you might set an absolute minimum selling price or agree on a maximum amount of time to wait for the market to improve. If you do need to put off the sale, however, make sure there is a clear plan written up as to who handles the housing maintenance costs as well as any repairs while the house is on the market.
7. Don't over price your memories. Financially, you may be sure you can't afford to keep the house, but you think staying there for your child's sake, for instance, is a good idea. It may be that there are more unhappy associations there than you realize, and sometimes those memories can hold you back from beginning your fresh start on a new life.
Tags: housing market, before divorce, before divorce finalized, divorce finalized, house before
