Spouses negotiating the terms of a divorce must make difficult financial decisions. Assets that have practical value and emotional worth may technically belong to both spouses.
That is usually the case for the marital home. Both spouses have an interest in the property, which means they have to negotiate a way to share the equity they have accrued. Spouses can generally employ any arrangements that they agree are reasonable. The three solutions below are the most common.
1. Continued joint ownership
Choosing to own the home jointly after divorce is uncommon. Some spouses repair a property jointly before selling it together and splitting the proceeds later. Others use the home as a source of income by renting it out. Parents might even negotiate a birdnesting custody arrangement.
2. The sale of the home
Neither spouse may be able to afford or want to live in the marital home on their own. People hoping for a fresh start can use the equity they previously accumulated to establish themselves after a divorce. Spouses could agree to sell the home where they live together and divide the revenue generated in a specific manner.
3. A transfer of ownership
Frequently, one spouse stays in the home while the other leaves. Those with minor children may arrange for the children to stay in the same home for the sake of stability. The spouse leaving usually receives a fair portion of equity when the other refinances. It is also possible to use other assets or marital debts to balance the property division settlement.
Considering each solution carefully can help spouses set achievable goals when they divorce. People who focus on specific goals are often more satisfied with the outcome of property division proceedings.
