As part of your divorce, you and your current spouse must decide what to do with your marital home. You still have a mortgage to pay, so should you sell the home or stay in it?
Bankrate gives a rundown of options for divorcing homeowners. Learn which option makes the most sense for your post-divorce life.
Staying or selling
Before you prepare to fight for the marital home, ask yourself if that makes sense. You may struggle to cover mortgage payments and home upkeep with your salary alone. Talk with your soon-to-be-ex-spouse to see whether she or he wants to sell. Together, you may reach a decision you both feel comfortable with.
If you sell the home, you must likely split the profits and pay off the mortgage. Also, consider realtor commission and whether you may need to repair the home before putting it on the market.
Mortgage refinancing
If you stay in your marital home, prepare to refinance the mortgage alone. That means applying for a home loan with your income and assets alone. Getting the same or a lower mortgage rate than what you have now could prove difficult. Consider your credit score and debt along with your income. If you receive alimony as part of the divorce, that factors into whether you qualify. Even then, you must consider what happens if your ex misses payments.
If you refinance and get your spouse’s name off the mortgage, remove her or his name from the title, too. If you do not, she or he may benefit from the property’s equity or if you sell the home.
Think carefully when deciding what to do with your marital home. Your decision may affect the rest of your life.
