If you and your former spouse bought a house together, a divorce could make your future in that home uncertain. Divorcing couples have a couple of options, including selling the house and dividing the proceeds or one person remaining while the other leaves.
No matter your choice, you need an appraisal before you follow through with any plans. The value of the house may determine which option works for your family.
How to sell the home for the most profit
If you decide as a couple you want to sell the house, you may want to consider selling before you finalize the divorce. If you divorce and one of you sell the home, only one person pays the capital gains taxes on the profit you make from the home. when married, you have a higher tax exclusion. Selling together results in more profit for the two of you to split.
How to remain in your home
If you remain in the home and your spouse wants to leave, you must refinance the home to qualify for the mortgage without your spouse’s income. If you want to keep the house, there are a couple of ways that you can divide the asset fairly. In some cases, one spouse will buy the other one’s share of the house; in others, one partner may receive different assets to equal their stake in the property.
Dividing a family home can become complicated because you are dealing with a high-priced asset that can change in value over time.