You have a lot of options regarding your home during divorce. Some couples keep the home and share the mortgage payments so the kids do not have to move. Some sell the house and split up the profits. Others allow one spouse to buy out the mortgage and keep the house alone, while the other spouse moves on.
What is right for you depends on your specific situation. However, there is one big advantage if you sell your house: You can then use the money you earn for any other shared debts you have as a couple.
Remember, property division is about more than just dividing your assets. You also need to split up your debt.
For instance, perhaps your home initially cost $200,000, but you have paid off $50,000 over the years. Your home has also gone up in value to $250,000 as the market rebounds. If you sell, you’re going to make roughly $100,000, or $50,000 each.
While you were married, you both took out student loans. You racked up credit card debt. You bought two new cars that you’re still paying back.
Selling your house is not always ideal, but it can make for a true fresh start after divorce. You can pay off your loans and credit card debt. You can start your new life with no financial obligations. Remember that living expenses go up and income often goes down after divorce, so this fresh start could be just what you need.
As you and your spouse go through the divorce process, make sure you know all of the options you have.