How should you handle the family home in your divorce?

It can be challenging to decide what to do with the family home during a divorce. This decision can spark conflict involving emotional ties and financial concerns. 

There are several options to consider, and each choice carries different possibilities or consequences.

Sell the home and divide the proceeds

One common option is to sell the family home and divide the profits. This choice allows both parties to start fresh and can provide a financial cushion for the next chapter of life. Selling the home requires both parties to agree on the sale price and how to split the proceeds. This option may be best if neither person can afford the home alone or if the home holds difficult memories.

One spouse keeps the home

Another option involves one spouse keeping the family home. This usually requires buying out the other spouse’s share. An appraisal will determine the current value of the home, and the buying spouse may need to refinance the mortgage. Keeping the home may be ideal when there are children to consider, as it may provide a crucial sense of stability. However, it is important to consider whether the spouse keeping the home can afford the mortgage, taxes and maintenance.

Co-own the home temporarily

Some couples choose to continue owning the home together for a period of time. This arrangement may work when the housing market is down, or when children need stability until a major milestone, such as high school graduation. This option requires clear agreements on mortgage payments, maintenance costs and how to handle future sale proceeds.

When making property division decisions during a divorce, it is important to choose an option that supports long-term stability. Weigh emotional and financial factors carefully. Open communication and careful planning can help both parties move forward while protecting their financial future.