So you are getting a divorce and you are wondering whether to keep the house for the kids
sake. That is certainly desirable for the kids. Divorce is traumatic enough as it is. If you stay in the house, the kids can maintain their relationships with their friends, and keep going to the same school. But we can’t always have everything we want. The house may have been purchased with there were two incomes to contribute to the mortgage payment. Now you may only have one. There is always the issue that the house may not fit the new lifestyle. Mon may not be able to keep up the house without help.
In order to retain the home, one spouse may need to purchase the other spouse’s equity in the property. This may involve a cash payment or giving up other assets that are owned jointly. It may be possible to refinance the home mortgage for an amount that exceeds the mortgage balance and use the proceeds to pay the other spouse for his or her equity in the home.
Keeping the home may seem to provide stability during an otherwise chaotic time. An ex-spouse may opt to keep the house for a short time after divorcing and then make a long-term decision after settling into the new lifestyle. Others decide that selling the home is the best choice because it harbors unhappy memories shared by the children. It is sometimes best to make a clean break and start fresh.
Consult with a Family Law Attorney First
Selling the home may seem like it would put the divorced couple in better financial standing, with some cash to use for a down payment on an individual residence. This is not always the case. A divorcing couples should consult with their family law attorney and real estate agent to determine how much they can sell their home for and what selling costs are involved, then subtract the mortgage balance from this figure.
Ty Zdravko practices law as a divorce attorney, and family law attorney in Palm Harbor, Clearwater and the surrounding area.
For more information, visit our website at www.divorceboardcertified.com
or call (727) 787-5919.