MIAMI, Florida. For most families, the biggest asset a couple owns is their home. When dividing assets in a divorce, deciding what will happen to the family home can be one of the more emotional and challenging financial decisions you’ll have to make. Unlike retirement funds or bank accounts, the family home often carries with it emotional attachment (and sometimes, baggage). What are your options regarding a shared mortgage or shared home during divorce? The Miami, Florida divorce lawyers at Sandy B. Becher, P.A. work with couples who share a family home. Here are a few possible solutions:
- Sell the home. According to Time Magazine, sometimes selling the home and splitting the profits is the best option. While the family home may carry emotional weight, selling the home may be able to give both you and your ex a fresh start.
- Take over the mortgage. Consider refinancing the home under the name of one person. It is not wise to keep both party’s names on the mortgage because unforeseen circumstances could result in the spouse that no longer lives in the home becoming liable. Additionally, if the spouse who is not making the payments wishes to get a mortgage in the future, being on the family home mortgage could cause difficulties.
- Consider the costs of keeping the home. While it may sound appealing to “buy out” your ex and keep the home, consider the hidden costs that might be involved. Do you have the money to pay for the mortgage, taxes, and incidental repairs? Would you be better off downsizing?
- Live together. While few couples go for this option, more and more exes are choosing to live together to pay off their mortgages and avoid higher rents. If you own a large home or can easily convert a part of the home into an apartment, living together may be an option, although
I highly do not recommend this option to my clients.
- Rent out your home. If the debts on your home exceed the value of the house, it may be difficult to sell. In this case, you and your ex may both choose to move out and rent out the home until the value of the home goes up or until you are in a better place to sell.
- Consider the tax implications of selling, buying, or keeping your home. Selling your home could come with a tax burden. If you and your ex sell your home later and no longer live in the home, you could be responsible for a higher tax burden, according to Woman’s Day. In order to avoid this additional tax burden, the divorce agreement needs to be carefully considered.
If you and your ex are getting divorced, there are many crucial questions you’ll need to answer. It is important to get these financial concerns right the first time because families can face additional financial burdens in the future if they don’t structure their divorce settlements properly. Visit our website today to learn more about how our team of divorce lawyers can help you find the best possible divorce settlement.