If you and your spouse are divorcing, you may have many questions about what happens to the family home. Divorce can be a complex and emotionally draining process especially when it involves making decisions about kids and combined assets. Deciding about what happens to the family home can be influenced by a number of factors largely depending on if you and your spouse are divorcing amicably. It also can depend on whether you are both using attorneys and how heavily involved they will be in the divorce proceedings.
One Spouse Wants To Keep The Home
When people think of divorce most of the time selling the family home comes to mind, but there are two ways to keep your home that spouses commonly find themselves in. A spouse may want to give up the family home with no interest in the equity that the home has acquired. If you find yourself in this situation your attorneys may include the details of this in the divorce decree and ensure that before the divorce is finalized the deed is transferred into one spouse’s name. There are times when one spouse wants to keep the family home and the other spouse wants to be compensated. In times like this, an appraisal will be ordered to determine the home value. Once known, the home must be refinanced into the spouse’s name that wants to keep the home, and half of the equity must be paid to the other spouse. Only one spouse’s name will remain on any loan documents and deed. In a scenario like this, it is key to speak with a qualified mortgage loan professional to discuss refinancing fees, monthly payments, and to ensure you qualify for a home loan on your own.
Selling Your Home
If neither party wants to keep the family home, if one spouse is unable to refinance, or if neither party can reach an agreement on what happens to the family home you have the option of selling. Selling your home allows you to be in control and have a voice in what happens to the family home.
I had a couple that was legally married, but seperated and no longer living together. The husband stayed in the home, but refused to make the mortgage payments. After 2 years the wife started receving foreclosure notices in the mail. The wife called me and we worked out a plan to sell her home before the foreclosure took place. This would have ruined both the husband and wife’s credit and would have made it impossible for them to recieve a loan in the near future. Divorce can be messy, but it is so worth it to have peace of mind.
Erica Garvin, Oklahoma Realtor
Connecting with a real estate agent who is savvy enough to handle the complications that can sometimes happen when couples are in the process of divorcing is so important. One spouse may not be on the best of terms with the other spouse, so a real estate agent who can provide proper guidance, level-headedness, and be a true professional who’s knowledgeable is needed. Once the family home sells the proceeds will either be split in half with each party receiving equal amounts, or held in escrow until both spouse’s attorneys decide what happens to the proceeds. There are cases where the profits are not split equally or may be applied to marital debt. Consult with a legal professional to determine how the profits can be split.
Deferred Sale
A deferred sale can happen if both spouses can agree. This process allows for the home to sell after an “event” has happened. The most common example we see is when children are involved. Spouses may agree to sell the family home once they leave for college. Deferred sales allow you to be creative in determining when would be the best time in your life to sell the family home and reduce the stress that may accompany the process. Keep in mind that the divorce decree may be more specific about who pays the monthly mortgage and what happens if payments are missed. Consult with an attorney to see if a deferred sale is right for you.
Court Ordered Decision
If a significant amount of time has passed and no party can agree about what happens to the family home a judge will listen to both parties and make a court-ordered determination. This decision will be handed down and also written into the divorce decree so that both parties must oblige.
How Does A Realtor Become Involved?
A real estate agent should be your first or second stop if you own any type of real estate. If you do not already have an attorney a well-connected realtor can refer you to a lawyer. If you end up selling your home they can help facilitate the sale by pricing your home, guiding both spouses through the delicate home selling process, and also coordinating things between everyone including the buyers, attorneys, and title companies. If you choose to refinance they can also refer you to a mortgage lender to make things seamless. Realtors are essential if you and your spouse are considering a divorce.
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