If you and your spouse get divorced, you may decide to sell your house. After all, as co-owners, you each deserve a share of the property in the divorce. Selling the house and dividing the proceeds is often the simplest way to handle this.
However, there may be situations where you don’t want to sell. Perhaps your children are in high school, and you want them to continue living there until they graduate. Or maybe the house is in a highly desirable neighborhood, and you don’t want to give up your dream home. Is it possible to keep the house?
Buying out your ex
It is possible to keep the house, but you may need to buy out your ex-spouse’s share to do so. If you own the house outright, you might offer other assets in exchange for their share. For example, if the two of you have substantial retirement investments, you could agree to give up your share of those investments in return for full ownership of the house.
Continuing to co-own the house
Another option is for you and your ex to continue owning the house together, at least temporarily. This arrangement might make sense if both of you agree that the children should remain in the home until they graduate. Even if only one of you makes the mortgage payments, you can remain co-owners to provide stability for your children. Once they graduate, you can decide whether to sell the house and split the proceeds or have one party assume full ownership.
Navigating your options
No matter which option you choose, a home is typically a significant asset in a divorce. Be sure to understand all your legal options and the necessary steps to protect your interests and make the best decision for your situation.
