If you and your partner are going through a divorce, it’s important to know that one of the biggest things you’ll have to sort out is your home mortgage.
Here are three ways to handle a home mortgage during divorce:
1. Sell the house
If you have enough equity in your house, it might make sense for you to sell it and buy yourself a new place or move somewhere else entirely. This way, there’s no co-ownership of the property, which can cause complications if there are any issues with maintenance or upkeep of the house after the divorce.
2. Buy out your partner
If you don’t have enough equity in the house to sell it outright and afford another place, you could buy out your partner’s share of the property by paying them an agreed-upon sum of money. This way, both parties walk away with something valuable: either cash or ownership over real estate (depending on their share’s value).
3. Co-own the house
If both parties can manage it, you may choose to co-own the house. This is a good choice if the housing market is unappealing, one spouse needs to rebuild credit or parents want to keep the stability for their kids.
Every situation is unique, and it is often easier to decide what to do with the house in amicable divorces.