What to do with the house when getting a divorce?
There is so much to consider and so many decisions to make when getting a divorce. One of the most important issues to resolve is any real estate that you own. This decision can have an impact on the future both financially and emotionally. The house is often the last tie to the past relationship. Letting it go means that it is time to move on which can be a challenge.
What are your options with the house?
1. Sell the house. This option is best for many divorcing couples. This allows the equity and debt to be resolved timely. There is something to say for a fresh start.
2. Delay the sale until a future date. If you have a specific need, like a child finishing school, agreeing to selling a home at a specific timeframe might be a good option. If this decision is best for all involved, you need to work out the details of who will pay the expenses. More important, you need to be confident that the home will be maintained properly and all bills will be paid on time to protect the equity and your credit score.
3. One of the parties can buy out the other party. This one needs to thougth out carefully as it can be the most challenging option. Can you really afford the house, long term? Is the agreed equity amount fair for the property? Why are you looking to keep the home? Will keeping it really accomplish the reason to keep the home?
4. The house can be a part of a settlement of the over all negotiations. Can you afford the carrying cost? Will the repair costs be something you can manage?
Challenges to consider when deciding what is best:
Selling the house can cause anxiety for some that are attempting to delay the emotional release of the separation. You often have to change your lifestyle as now you have two expenses with the same income. However keeping the house will not allow the imagined future to come as you had planned. The house becomes about the dreams that you realize are no longer going to happen. If you were advising a friend, what would you suggest them to do?
If you are buying out one of the partners there are things that both need to consider. Are you both on the note? Will you be refinancing the home or keeping the existing loan? What happens if you find that you can not afford the home? If the mortgage payment is not made, what happens to your credit if you don't own the home anymore. What? Didn't this get resolved already? This is one fact to consider if the home is not re-financed. You won't be responsible for the debt however it still could impact your credit so consider this carefully.
We have the experience to help you protect your equity. It is not about taking sides as both parties benefit from a solid plan when it comes to your real estate needs.
Treu Group Real Estate has the strategies you need so call us to schedule a consultation to help you decide what is best when you are divorcing and have real estate to address.
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