You and your husband or wife bought a home together, and now your relationship has ended and you must figure out what to do with it. This is a common scenario faced by many former couples navigating divorces, and seeing how others have handled it may help you do the same.
According to NerdWallet, while you have some options in terms of how to divide the equity you have in your marital home, most former couples choose to handle things in one of three ways.
1. Sell the home and split the proceeds
Unless you are facing a bad market or one of you feels strongly about keeping the home, it may be easiest to put it on the market and split anything you make when it sells between you. This gives you an opportunity to leave behind what might be bad memories. It also may give you the funds you need to find a new place to live.
2. Refinance the mortgage
In the event that you want to stay in the home and your ex does not, or vice-versa, consider refinancing the mortgage to eliminate the party who is leaving. The person who wants to stay then gets a new loan with just his or her name on it after paying off any mortgage debt from the original loan.
3. Consider joint-ownership
In a third common scenario, you and your partner would take turns sleeping in the house while the other party stays elsewhere. This is not a financially feasible arrangement for everyone. However, many people who do choose it do so because they want to keep the children in a familiar environment and minimize any disruptions in their lives.
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