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Putting Divorce and Home Ownership Under the Microscope
A divorce is a time of huge uncertainty for many reasons. Who’s going to move? What kind of arrangement will you have with the kids? What happens with the money? The pets? The property?
That last one can be a big sticking point, for many of us. We invest in property, then we make our homes and memories in that same property. So what happens to the house when you and your spouse eventually part ways?
Let’s take a closer look at divorce and home ownership.
Putting Your House On Sale
At first glance, this isn’t what most people think of when they think of splitting up their home after a divorce. After all, there may be bitterness and resentment between you and your spouse but the truth is having a home breeds a certain sense of ownership in people.
But, speaking plainly, sometimes you just can’t afford a whole house, especially with a joint income that has now been halved (if you’re lucky). Or maybe it’s about the emotional investment more than the financial aspect of it. If neither spouse is interested in living in the home or using it for any purposes, and neither can afford it either, it might be time to put it on the market.
After all, why cut your nose to spite your face? New beginnings are an important part of the divorce process, and it might be good to try and get a price on the house and move on. At the end of the day, if your home has become a big building that reminds you of your divorce, then why stay?
When someone buys out a home, they are offering a price for the other spouse’s “half” of the house. This may be in cash or installments and essentially allows one spouse to carry on living there while the other makes a profit on their portion of the home. You’ll see this most often in cases where the primary caregiver wants to stay home with the children.
The one thing you’ll want to be aware of is that this is a complex process with a lot of potential pitfalls. It’s important to work with a negotiator or mediator who There are many complexities that come with a purchase like this. You’ll want to work with a negotiator who can advise you if you want to get the best return on this.
Of course, there may not always be room for one party of the other to be magnanimous. Sometimes, what works best for both parties is having their own piece of the pie. In cases like this, it’s best to consider a co-ownership arrangement in which both parties have some stake in the property.
Think of your relationship as having evolved into more of a business arrangement. You are now co-owners in a partnership where your property is the priority.
Divorce and Home Ownership
At Koleilat Law, we have been helping spouses navigate the tricky waters of divorce and home ownership for more than 16 years. Learn more about the ins and outs of high asset divorces from one of the leading names in the industry, today.