What will happen to your house as you divorce? The marital home can be one of the biggest assets in a marriage and also the hardest to divide.
If you want to keep the home can you “buy out” your spouse? Can you refinance the mortgage on your own? Will you have to sell your home when you get divorced?
Next Act Properties can help you make the right decisions and determine if you can afford to stay in your home or if it is best that the home be sold. Most importantly, we also work with your divorce attorney to ensure that the legal divorce agreements have the correct language so your interests are best protected. If the home has to be sold we have a network of agents who specialize in divorce who can help you through the sale process and then help you find a new place to live.
Divorcing? Deciding what to do with your marital home?
Typically there are three options couples consider when deciding what should happen with their home. These include, joint ownership, selling the home, or one spouse may want to keep it. Which option works for you depends upon a variety of interwoven factors including your other financial assets, income, and even credit score.
Keeping the home and continually to jointly own the property is rarely a good option. After all, you are divorcing for many reasons and a clean split is often the best course of action.
Selling the home and splitting the equity comes with decisions to make jointly such as the selection of the realtor, asking price, and then final closing issues.
Many times one spouse decides to keep the home and buys out the other’s share of the equity during negotiation with other assets. This can work as long as the spouse keeping the home has the financial ability to refinance the mortgage and afford upkeep going forward.
Our team at Next Act Properties is ready to help. We specialize in helping divorcing people work through the details of their real estate and mortgage issues. We not only can assist you and your divorce attorney in planning, but we can also help you refinance or, if necessary, sell your home.
Keep & Refinance Your Home When Divorcing
Can you keep your home and refinance your mortgage when getting a divorce?
If you are going through a divorce, your attorney has probably mentioned the “marital home” and your various options of what to do with it.
What is required if you want to keep your home as you divorce?
There are three big considerations to keeping your home:
1) How much equity do you have in the home that will need to be divided in your divorce and do you have other assets to “buy out” your spouse’s share of that equity?
2) Will you be able to refinance the mortgage in just your name? To refinance you will need to have a good credit score as well as sufficient income from a job, alimony, and/or child support.
3) Lastly, and perhaps most importantly, we want to make sure you can afford to not only buy out your spouse’s share of the equity, refinance the mortgage and make the monthly mortgage payments, real estate taxes, home owner’s insurance, etc. but also be able to properly maintain the property.
We don’t want you to be house rich, but cash poor!
We will work closely with you to ensure that your financial situation, divorce agreements, and future budget will all be working together should you decide to keep your home.
If you have questions and/or are ready to get started today we are here to help you.