When going through a divorce, deciding what to do with one’s marital home is often one of the most significant decisions. Several options are available, each with its own benefits and drawbacks.
Understanding these options for the marital home can help divorcing couples make informed decisions that best suit their individual circumstances and future needs.
Selling the home
One option is selling the home and splitting the proceeds. This choice is often straightforward and provides a clean break, allowing both parties to start anew. The financial gain from the sale can be used to settle debts or invest in separate living arrangements. The downside includes the potential stress of selling a home. This is particularly problematic in a challenging market.
Retaining the home
Another option is for one spouse to keep the home. This can provide stability, especially if children are involved, allowing them to remain in a familiar environment. The spouse who keeps the home might buy out the other’s share, refinance the mortgage in their name or negotiate other assets in exchange. This option requires the retaining spouse to have the financial capability to afford the home independently.
Co-ownership is another possibility, where both parties retain a share of the property. This arrangement might be temporary, perhaps until children reach a certain age, or longer-term based on mutual agreement. This can provide continuity and stability for children but requires high cooperation and trust. It also means that both parties’ finances remain entangled, which can be complicated.
Renting out the property
Renting out the marital home is an option that can provide a source of income. This choice can be particularly appealing if the market conditions are unfavorable for selling. Being landlords requires management and agreement on handling tenant issues, maintenance, and expenses, which might be challenging if the divorce is contentious.
Understanding the benefits and drawbacks of each option is beneficial for people going through a divorce. The considerations must go far beyond the emotional ties to a property, so it’s likely beneficial to seek legal assistance to learn how each viable options might impact one’s situation moving forward.