Divorce comes with many emotional and financial issues to solve. One decision you will
eventually have to make is: what to do about the house.
We have some answers to help you get through this tough time. These crucial decisions are
easier to make once you figure out how divorce is going to affect your home, mortgage and taxes. Third
party information can help you make rational, logical choices instead of emotion-driven decisions.
The first decision is probably whether you want to continue living in your house. How will you
handle seeing these familiar surroundings and memories daily? Will it bring you comfort or unpleasant
memories? Will moving be too much change, or should you sell and move to a new location with a new
You alone can only answer these questions, but take into consideration the financial
repercussions of each action. Ensure that whatever you choose will bring you joy in the long-term and
be fiscally responsible. The purpose of this report is to ask you the right questions and show some
options on how to responsibly handle your home after a divorce.

Here Are Your Four Options:

  1. Sell The House And Divide The Proceeds.
  2. Buy Out Your Spouse
  3. Have Your Spouse Buy You Out
  4. Retain Ownership

There are financial implications for each scenario, so let’s break them down:

Sell Your House and Divide the Proceeds
If you choose to sell your home and divide the proceeds, your primary concern is most likely maximizing
the sale price of the property. Most often, people don’t understand what their net proceeds will be. An
example is after selling expenses and determine what your split will be. This isn’t always a 50/50 split.
There are many variables that can influence one partner to get more than the other. The outcome of the
divorce settlement, the source of the original down payment, and property laws in your area may
change the percentage you’re entitled to.

Buy Out Your Spouse
If you want to keep the property, you’ll have to refinance and determine how you’ll meet the monthly
financial obligation since there will only be one salary. If you qualified for the old loan using two
incomes, refinancing may be difficult.

Have Your Spouse Buy You Out
If you’re the one leaving, you have the opportunity to start fresh with some extra money. Although that
can be exciting, ensure you’re your spouse refinances quickly after separation so you are no longer tied
to the loan. Most lenders consider you and your spouse as original co-signers to be liable for the
mortgage. This might make qualifying for a new mortgage difficult even though you won’t have legal
ownership of your old property.

Retain Joint Ownership
Some couples in the midst of a divorce decide to retain joint ownership of the home for a mutually
agreed period of time even though in most cases only one spouse lives there. While this may be a
temporary solution, it may eventually cause a problem as your tax considerations may change from the
time of the divorce to the time of the sale.

When you decide to sell, it will be important to work together to maximize your profit. Both should be
present at the listing presentation and should understand and sign this contract, being active in
negotiations, etc.
When you buy your next home use proceeds from your previous property or buy-out to determine the
price range for your next home. Ensure you pick a property that fulfills all your needs within your price
range. An agent who offers house-hunting services will be able to quickly help you find the property you