When you divorce, you will need to divide your marital assets. Your house is one of the most valuable of these. On top of that, it could carry sentimental value.
If you need a court to decide how you will split your assets, they will look at its financial worth and add that to the total assets to split. So if your house is worth $400,000 and you have $200,00 in other assets, then there is $600,000 to divide. Provided, of course, you own the house outright, as an outstanding mortgage reduces its real value.
Here are some ways you can deal with your home
These are just three options:
- Sell it: You can then put the profits into the total asset pool to be divided.
- One buys the other out: Cash won’t necessarily change hands One person could simply allow the other to take a larger share of the rest of the assets to compensate them for what would have been their share of the house.
- Hold onto it together: This is typically not the best solution, as the ideal is to separate your finances entirely. Yet it could be useful if the property market has dropped and you wish to hold out for a higher price.
Children can affect who gets the house
If the children will live with one person most of the time after divorce, a judge may decide it is better for that parent to keep the house because it provides continuity for the children. However, the judge would still factor it into the total split of assets.
Getting legal help allows you to investigate all options regarding property division.