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What could divorcing spouses do with a home?

| Apr 20, 2021 | Divorce |

A house often provides the owners with the bulk of their net worth. Choosing an appropriate and affordable home becomes a priority for married couples. When divorcing, both spouses must make decisions about the property. Property division may become a contentious issue during Pennsylvania divorce proceedings, or both parties may agree to a reasonable way to distribute things. The divorcing couple could find value in being agreeable and clearheaded when figuring out what to do with a home.

Common ways to deal with the property

One spouse may feel more attached to the property than the other. Or a spouse could find the home convenient for work or the children’s school plans. So selling the home may not be the preferable option, but a buyout seems workable. With a buyout, one spouse sells his or her interest in the house. Usually, the buyout comes with a “fair market value” offer. If the parties agree, then the process could move forward in the settlement without any issues.

Selling the home to a third party and dividing the profits is another option. Sometimes, neither spouse wants to deal with owning the home. A single income may not be enough to cover its expenses, and a sale makes better fiscal sense.

Sometimes, spouses make the mistake of attempting to hold onto an unaffordable home. Such blind attachment may not even be the best course of action for the person who is hoping to keep the house.

Examining all options with the home

If the home is in good condition, and there’s no mortgage, a spouse could seek a buyout and then rent the property. Such things may factor into decisions about steps to take. When a mortgage remains, refinancing the loan for a lower interest rate could make it less expensive to own or use as an income property.

Anyone interested in keeping the property may look at the costs and benefits. Sometimes, selling is better. That said, rushing to sell may not be as best as waiting until the market landscape improves.

An attorney could handle property division negotiations for a client. A lawyer may also seek spousal support to assist clients dealing with post-divorce living costs.