Are you worried about how your marital property is going to be divided during the course of your divorce? It’s a legitimate concern considering that the outcome of the property division process can dictate your financial wellbeing for some time to come. To settle your nerves and put you in the best position possible to secure your financial wellbeing, you need to be prepared before you enter settlement negotiations. The first step in doing so is simply knowing your options.
Know what you want to do with the family home
One key asset that you’ll have to address is the family residence. Some people who are going through a divorce think that they should fight for this asset because it is the biggest. Others have an emotional attachment to it. But there’s a lot you need to take into consideration when addressing this issue. Keeping the home, for example, can leave you saddled with a mortgage and maintenance costs that you’ll have to deal with on your own. This could leave you in a difficult financial position.
So what are your options?
There are actually a lot of ways you can handle the family home in your divorce case. Consider each carefully.
- Buyout your spouse: This might require you to acquire and fork over a significant amount of cash.
- Sell to your spouse: This option might give you a quick infusion of money, but you also lose out on the attachment you have to the residence.
- Negotiate other assets: Whether you want to keep the home or get rid of it, other assets, such as bank and retirement accounts, may be negotiated over to level the playing field. Make sure you’re looking at the long-term financial impact before agreeing.
- Co-own the home with your spouse: Sound strange? It certainly can be, but it can also help you build equity while sharing the home’s costs.
- Sell the home: Here, you and your spouse simply sell the residence, split the profits fairly, and go your separate ways. This can provide some income while cutting financial and emotional attachments to the home.
In the end, you have to do what’s right for you. But sometimes in the throes of divorce that’s hard to see. So, if you need assistance coming up with a divorce strategy that furthers your interests, consider discussing your situation with your family law attorney.