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home after divorce

How to Keep Your Home After Divorce

The financial turmoil that frequently follows divorce can be one of many factors making it challenging. What to do with the family home is one of the most important decisions people must make during a divorce. It can be emotionally challenging to sell the family home as it is frequently the couple’s most important possession. 

In this article, we’ll look at your alternatives if you wish to keep your home after divorce. 

Sell the House 

When it comes to the family house, selling it and dividing the money is one of the most popular solutions. If both parties are open to working together and there is sufficient equity in the property to turn a profit, this might be a wise choice. 

However, this might not always be the case as it might not be feasible financially to sell the house if the housing market is weak. Additionally, if one side wants to keep the house, they might not be willing to sell it. 

If you do decide to sell the house, it’s a good idea to work with a real estate agent who has experience with divorce sales. They can help you navigate the challenges that arise during these types of sales. You’ll also want to work with a divorce attorney to ensure that the sale is done fairly.

Have One Party Buy Out the Other

Another option for keeping your home after divorce is for one party to buy out the other. This can be a good option if one party wants to keep the home and the other is willing to sell their share. 

Typically, the party who wants to keep the home will need to refinance the mortgage in their name. This will require them to qualify for the mortgage on their own, which can be difficult if they don’t have a steady income or good credit.

Be sure to work with a real estate agent to determine the fair market value of the home, and with a divorce attorney to ensure that the buyout is also done equitably..

Continue to Co-Own the House

Continued co-ownership of the house is an additional option if you want to keep your home after a divorce. 

If both parties are prepared to cooperate and have the financial means to preserve the house, this can be a great alternative. However, if there are kids involved, this choice can be challenging. 

Having two homes can be challenging for kids, and managing schedules between the two homes can be challenging for parents.

That is why working with a mediator to create a co-ownership agreement is crucial if you wish to co-own the house. The obligations of each party and how costs will be allocated should be specified in this agreement.

How to Keep Your Home After Divorce?

Deciding whether to keep your home after divorce can be challenging, but it’s crucial to consider all of your alternatives. 

Working with a group of experienced professionals can help you make sure the procedure is carried out properly and equitably if you opt to keep the house. You should consult a divorce lawyer to make sure all legal requirements are satisfied, a real estate agent to assist with any sales or buyouts, and a financial advisor to assist you in managing your finances.

Contact us

Ultimately, the decision of what to do with the family home will depend on your specific situation, but if you have more questions, our team is here to help you every step of the way.  

At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to arrive at comprehensive solutions for our clients. 

We can help you arrive at the best solution for you and your family. Contact us today to know more!