After all the hard work you have put into purchasing and maintaining your family’s home, it can be difficult to let it go after your divorce. Although you might think of your house as your greatest asset, it might not be the prize you think it is when you get divorced. For many, the family home can be become a financial sinkhole that is best left for someone else to handle. Below, we explain a few things you can do to limit your financial liability for your family home after you have been divorced.
Sell Your Home
This is usually the simplest way to break away from an asset you no longer want to own. The money from the sale can be divided with the other assets in your estate when your divorce is settled. Doing this will enable you to find a home that is better suited to the needs of your new financial situation.
One Spouse Keeps the Home
If it makes financial sense for one of you to keep the home, you should definitely consider the option. However, the person who decides to keep the home will essentially be purchasing the second half of the house from the other spouse. Selling the home won’t remove you from the mortgage, instead, you will need to refinance to sort out your debt responsibilities.
Wait to Sell at a Later Time
Sometimes, it’s better to wait for the market to improve before you try to sell your home. However, you should remember that if you choose to wait to sell, the ownership of your home should be treated as a business partnership between you and your former spouse. You can also rent out the home while you wait to sell or you can have one spouse live in the house as tenant.
What If There Is a Trial for My Divorce?
Sometimes the court awards one spouse exclusive use and occupancy of the family home. This usually occurs if there is one of the following things present in the case:
- Domestic violence or abuse against a spouse or children
- A documented history of fear or intimidation
- One spouse left the home and is now living elsewhere
If your divorce goes to trial and you want to keep your family home, you should consider the following things:
- Obtain evidence of your home’s value by getting expert testimony from an appraiser.
- Provide the court with valid reasons why it would be in the interests of your children to remain in the family home. Established personal and business relationships can be used to show why it is so important for you and your children to keep the home.
- Get proof that you are able to refinance the mortgage in your name. If there is equity, you need to show that you can afford to buy out the other spouse’s interest.
Are you concerned about what will happen to your home after your divorce is finalized? Let our team of Oklahoma City divorce attorneys help you today. Contact our law firm to schedule a free case consultation.