Giving Men An Equal Voice In Divorce

What happens to the marital home in divorce?

On Behalf of | Dec 15, 2023 | Divorce

The marital home is one of many couples’ most significant assets. When they decide to divorce, some big decisions have to be made about the fate of the assets. One of these is what they should do with the home.

Three primary options might be considered for the marital home. Determining which is best requires both parties to consider long-term and short-term implications for each option. 

Buyout and refinance 

One of the most common options people use during divorce is for one party to refinance the home to buy out the other person’s share of the equity. The buyout isn’t always for cash. Other assets and debts are sometimes moved around to account for the home. 

Sell the home 

Another common option is selling the home. Both parties have to agree on the offer that’s accepted. If the house sells for more than the mortgage balance, the overage can be used to pay off marital debts. The overage can also be divided as part of the property division process.  

Co-own the house 

While it’s not a very popular option, some people opt to co-own the house even after divorce. This may be so they can rent the home or so the children can continue living there. If this option is used, everything related to the house’s upkeep should be spelled out in writing. This includes how expenses will be handled and what happens if the home is ever sold.

The marital home is only one thing that must be considered during property division. Other assets and debts must also be handled. Working with someone who can assist you with these matters is critical.