Property division is often one of the most challenging steps for people who are going through a divorce. This involves splitting up all the assets that they amassed together. They also have to tackle the debts.
The marital home is often one of the largest assets that’s part of this process. It’s also one that has considerable emotional ties. If you’re heading into property division, it may behoove you to explore the options that you have for the marital home.
Sell it to pay off debts and divide the remainder
If you have joint debts to divide, it may be best to sell the marital home to pay those off. This enables both parties to start their new life without having to worry about those marital debts. Whatever is left after those debts, the mortgage and any other obligations are covered can be divided.
One party buys the other party’s equity
Either you or your ex can buy out the other party’s equity. This can be done in cash or by relinquishing other assets. The party who keeps the home will likely need to refinance the home without their ex’s name on the property.
Co-own the home for the children or as an investment
Co-owning the home is another option. Some people do this so the children can remain in the home, but there’s an agreement to sell the home once the children are grown. In other cases, they keep it as a joint investment property. Proper contracts are critical if you choose this option.
Determining which of these is the best option for the situation may not be easy. It may be beneficial if you have someone to discuss the options with you and help you to uphold your rights during the property division process.