One key factor in the asset division process is who retains the family home. It can hold countless memories and sentimental value, making the decision particularly challenging. Effectively determining the fate of the family home during divorce starts with taking your emotions out of the equation.
There are several key factors to consider while you decide what to do with the property.
Your financial circumstances significantly impact the home settlement decision. Determine the home’s value, remaining mortgage and any potential equity. Assess each partner’s financial stability and their ability to maintain the property on their own. These financial factors can influence whether it is best to sell, buy out the other spouse or keep the home jointly until a more suitable time.
If you have children, their well-being becomes the priority. Consider the effect of upheaval on them before you decide. The custodial parent might find it in the children’s best interest to keep the family home for stability and consistency.
Sometimes, the timing of the settlement influences the decision. If you want to sell the home, for example, you might need to wait for the market to improve or stabilize before you do. According to Zillow, listed homes typically take anywhere from 55 to 70 days to sell, including the closing process. Consider the effect of that timeframe on your finances, including ongoing mortgage payments, as you decide how to handle the home sale.
Your family home is likely the most significant asset you have in your marriage. Ensure that both of you receive your equal share of that investment no matter what you decide to do with it.