For many people, one of the ultimate life goals they have is buying a home. That dream may seem like a nightmare if the couple gets a divorce. They will have to determine what happens to the marital home. There are several options to consider if you’re in this position.
One of the first things that you must do is to review your finances to determine what is possible. Taking a look at what your finances will be like after the divorce will give you a better idea of whether you should try to keep certain marital assets.
What factors should you consider regarding the home?
If either party wants to keep the home and buy the other person out, the buyer will have to ensure they can obtain a mortgage and pay for it. This might be more challenging than they realize due to having to live on a single income after the divorce. It might be possible to simply offset the buyout for the home by giving up other assets.
You also must think about the upkeep costs and other expenses related to owning the home. This includes things like maintenance, repairs, taxes and insurance. These can add a considerable cost to your expenses.
In some cases, the home will need to be sold. It may behoove you to sell before the divorce is finalized. This enables you to receive a larger exemption from the capital gains tax if the home sells for a profit.
Anyone who is going through the property division process should ensure they know their options. The decisions you make during this phase of the divorce can have a significant impact on your future, so be sure to think about the long-term and short-term implications of each option.