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 you sell or stay will be dependent on several factors. You might continue to hold the house as a joint asset with your ex-spouse. If the two of you are communicating, this might work, at least on a temporary basis.
This is usually not a long term solution though. If you are going to be the one in the house, you will probably also be the one responsible for the mortgage payments, taxes, and interest. It's important to feel comfortable that you can handle this financially.
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 buying him out completely right after divorcing is beyond your means, you might have a discussion with him about a deferred sale. With this arrangement, you and your children stay in the home as long as they are underage. Once the kids reach legal age, you have to sell the house.
This can work, at least temporarily. It can become a problem when your ex finds a house of his own he wants to buy. Since his name is already on one mortgage, getting approved for another one will be difficult.
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 you sell or stay will be dependent on several factors. You might continue to hold the house as a joint asset with your ex-spouse. If the two of you are communicating, this might work, at least on a temporary basis.
This is usually not a long term solution though. If you are going to be the one in the house, you will probably also be the one responsible for the mortgage payments, taxes, and interest. It's important to feel comfortable that you can handle this financially.
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 buying him out completely right after divorcing is beyond your means, you might have a discussion with him about a deferred sale. With this arrangement, you and your children stay in the home as long as they are underage. Once the kids reach legal age, you have to sell the house.
This can work, at least temporarily. It can become a problem when your ex finds a house of his own he wants to buy. Since his name is already on one mortgage, getting approved for another one will be difficult.
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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