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What Happens to The House in Divorce?

What Happens to The House in Divorce?

One of the most frequently asked questions regarding divorce is, “who gets the house?” Well, you and your spouse have three main options:

1. Sell the house and split the equity.

Taking this option may seem straightforward, but it can be tricky. This option first depends on whether the house is marital property. There can be many other factors that go into how the equity is to be divided in conjunction with the division of other marital assets as well as the circumstances of the parties.

2. One buys out the other.

This is a very common option. When a couple decides to take this route, they typically refinance the original mortgage loan. Then, the ex who wants to remain in the home applies for a new loan in their name individually and borrows enough money to pay off the previous loan as well as any money the other party is entitled to. Before making this decision, you should consult an attorney and a mortgage lender to ensure that the spouse who wants the home can afford it.

3. Keep the house together for now and sell it later.

Sometimes soon-to-be ex-spouses will choose to keep the house for the time being and sell later because they do not want to add any extra stress on top of what is already present. This decision is put into the settlement paperwork filed during the divorce with specific details as to who is responsible for the expenses and how and when the home will be sold. One thing to remember is that whoever pays the mortgage must not miss a payment. It could significantly affect both of you down the road.

Before deciding which route to take, you should speak with an experienced divorce attorneyContact our team at 847-443-5541 so we can help you with this massive decision. With 30+ years of experience, you can trust us to guide you through life’s most challenging moments.