Once you take emotions out of the equation, much of the divorce process involves disentangling your life from that of your ex and figuring out how to divvy up shared assets and debts. For many Georgia residents navigating divorces, home equity serves as one of the most valuable assets in need of division.
Per NerdWallet, you have options in terms of how to handle the equity you amassed in your home since purchasing it. Many people choose to handle their home’s equity amid divorce in one of the following ways.
By selling the home
Unless you or your former partner have a strong desire to stay in your former marital home, consider placing it on the market. Then, when you make profits on the sale, you and your former partner may each take half. This may give you enough of a nest egg to put down a deposit or down payment on a new place to live.
By refinancing the mortgage
Conversely, if you or your ex wants to remain in the home you once shared together, that party might try to qualify for a new mortgage without the other party. If successful in doing so, the one who wants to keep the home replaces the old mortgage with a new loan and in doing so, pays off old mortgage debts. The process may free up enough money for the party who wants to stay to buy out the other party’s portion of the equity.
In rare cases, it may benefit you to consider other options or wait for real estate market conditions to improve. However, most former couples choose to divide up their home equity using one of the methods outlined above.
