Couples who have been married for a length of time, and then begin divorces, usually have several joint assets. The majority of the time couples decide to split those assets between themselves. This can be difficult. Distributing the net proceeds after a sale is about the only way to fairly divide the family home for instance. If you're in the middle of divorcing, you might question whether this is the best idea for your family. What to do with the house is one of the most common questions about divorce real estate Orange County CA lawyers hear.
Whether or not to sell your home depends on a variety of factors. You and your spouse can decide to hold the asset jointly. This might work as long as you are both communicating.
This is probably not a solution for the long term however. If you're determined to live in the house, you need to realistically consider whether you have the financial means to make the monthly mortgage, tax, and insurance payments. You will also need the funds to maintain the residence.
If you have determined that you are financially capable of maintaining the house both financially and physically, your next step is to determine what it will take to buy your ex-spouse out of his share. A lot of times the custodial parent wants to stay in the family home in order to give the kids a feeling of continuity and security. There are a number of ways to come up with the cash necessary to keep the house in your name only.
If you are low on funds and don't have enough resources to actually buy out the ex-spouse you might float the idea of a deferred sale. This arrangement allows you and your kids to stay in the family home as long as the kids are underage. Once they're eighteen, you sell the house.
This can work temporarily. The problem is going to be when your ex-spouse decides he wants to buy a house of his own. Since his name is already on one loan, it is going to be difficult for him to get approval for another mortgage.
If you do have the funds to buy out your ex-spouse, you will need to get the mortgage refinanced. Removing him from the deed is easy. Removing his name from the mortgage is more complicated. You should do it though, because it can affect both your credit scores negatively if one or the other of you is delinquent on payments. You personally have to qualify to get the loan refinanced. You might be looking at a higher interest rate.
Couples who do sell sometimes consider advertising the house as a divorce sale. They are usually sorry they did it. Potential purchasers assume this is a distress sale, and you'll take any offer you get, no matter what it is. That encourages them to make such lowball offers that countering and negotiating is not worth the effort.
Whether or not to sell your home depends on a variety of factors. You and your spouse can decide to hold the asset jointly. This might work as long as you are both communicating.
This is probably not a solution for the long term however. If you're determined to live in the house, you need to realistically consider whether you have the financial means to make the monthly mortgage, tax, and insurance payments. You will also need the funds to maintain the residence.
If you have determined that you are financially capable of maintaining the house both financially and physically, your next step is to determine what it will take to buy your ex-spouse out of his share. A lot of times the custodial parent wants to stay in the family home in order to give the kids a feeling of continuity and security. There are a number of ways to come up with the cash necessary to keep the house in your name only.
If you are low on funds and don't have enough resources to actually buy out the ex-spouse you might float the idea of a deferred sale. This arrangement allows you and your kids to stay in the family home as long as the kids are underage. Once they're eighteen, you sell the house.
This can work temporarily. The problem is going to be when your ex-spouse decides he wants to buy a house of his own. Since his name is already on one loan, it is going to be difficult for him to get approval for another mortgage.
If you do have the funds to buy out your ex-spouse, you will need to get the mortgage refinanced. Removing him from the deed is easy. Removing his name from the mortgage is more complicated. You should do it though, because it can affect both your credit scores negatively if one or the other of you is delinquent on payments. You personally have to qualify to get the loan refinanced. You might be looking at a higher interest rate.
Couples who do sell sometimes consider advertising the house as a divorce sale. They are usually sorry they did it. Potential purchasers assume this is a distress sale, and you'll take any offer you get, no matter what it is. That encourages them to make such lowball offers that countering and negotiating is not worth the effort.
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