Most divorcing couples want to sever their financial ties and either sell the house or have one person buy the other out. Yet, there are occasions when it may make sense to continue owning the property together.
Here are some reasons a couple might want to keep both their names on the title deeds for the time being at least:
1. Selling now would be a bad financial move
You bought the house for $400,000 and then the market dropped and it became worth less than you paid for it. You might want to hold on to the home until the market rises to avoid both making a loss.
Alternatively, maybe the property is already worth more than you paid for it but you expect the market to rise quickly due to a new company or college moving into town and increasing the demand for housing. Holding on before selling could give you both a useful financial boost.
2. You want to keep it for the kids
If you have school-age children, permitting them to continue in the same house could reduce the disruption your divorce causes to their lives. The parent who continues living in the house with them could make concessions in the divorce settlement in exchange for getting to live there.
3. One of you wants the house but can’t afford to take it on alone yet
Maybe you have decided that your soon-to-be ex will keep the house. The problem is they can’t get a big enough mortgage on their current salary. If you are confident their earnings will soon increase you might agree to keep the current joint mortgage until they reach a point where they can take it over.
Whatever your plans for the family home, it’s important to have legal guidance to understand more.