There are typically a variety of different types of assets and property that need to be divided between the divorcing couple during the divorce process. One part of the property division is how the family home will be divided which makes it helpful for divorcing spouses to know how to approach that process.
Property division of a home during divorce
There are several different approaches to dividing a home during divorce that divorcing spouses may want to be familiar with including:
- Sell the home and share the proceeds: The divorcing couple may decide together to sell the home and share the proceeds of the sale. Divorcing spouses should take into account the tax implications of any sale, if they are both able to secure alternate housing and that a sale may delay the property division process.
- One spouse buys out the other spouse: If one spouse wants to remain in the home, they may want to determine the home’s value and calculate a buyout price and buyout the other spouse’s interest. The best course of action is typically to refinance the home to remove the spouse who is being bought out from the mortgage.
- Spouses decide to maintain joint ownership: If the spouses agree that one spouse should remain in the home until minor children living in it from the marriage are grown, they may want to continue as joint owners. They should determine how household expenses including mortgage payments, home improvements and major repairs will be shared. The spouse staying in the home will usually be responsible for utilities, taxes, insurance and minor repairs.
If the divorcing couple is unable to decide how to divide their interest in the family home, the family law court may make the determination as part of the overall property settlement agreement between the divorcing couple at the end of their divorce.