Once you separate emotions from the day-to-day aspects of divorce, you may find that the process boils down to dividing up your assets and debts. For many former couples, the equity they have in their shared home is among their most significant assets, so figuring out how to divide it up is a critical step in the process.
Most former couples who part ways choose to split up the equity they have in their once-shared home in one of three ways.
1. Sell the home and split the proceeds down the middle
Unless one of you resists the idea of leaving your former family home, consider putting it on the market and splitting what you make on the sale between you. This gives you an opportunity to make a clean break from one another, and it may also give each of you enough money to find a new place to live.
2. Have one party refinance the mortgage
If you or your former spouse do have deep ties to the home, the party who does may be able to refinance the mortgage to eliminate the other. This gives the person who wants to stay a chance to pay off the original debt and take out a new loan for a solo mortgage.
3. Try bird-nesting
If budget is not a big concern, or if you have children who are going to move out within a reasonable timeframe, you and your former partner may want to consider bird-nesting. This living arrangement involves you two taking turns living in the former family home with the child or children while the other lives elsewhere, such as in a nearby studio apartment.
Get Answers From Our Legal Team
Divorce is never easy, and dividing home equity can be a complicated process. Fortunately, there are a variety of options available to help couples fairly and equitably split their home equity. Whether you choose to buy out your spouse, refinance the property, or enter a marital settlement agreement, it is important to have an experienced attorney help you navigate the process to ensure that your interests are protected.
If you are facing the prospect of dividing home equity during a divorce, it is important to have an experienced attorney on your side. An attorney can help you evaluate your options, advise you on the best course of action, and guide you through the entire process to ensure that you receive your fair share of the home equity. Contact a divorce attorney today for help with dividing home equity during your divorce.
We have offices across Pennsylvania including offices in Doylestown, Norristown, Philadelphia, and West Chester.