A divorcing couple has three main options when it comes to property distribution. Before they select the option that will work best for their family, they must first determine the value of the home. It is best to get an appraisal for this step. If you live in North Carolina, here are some things you should know about splitting the value of your home after a divorce.
Selling the house and splitting the profits
The most efficient way to handle property distribution when it comes to the marital home is often to sell the house. Once the mortgage debt and taxes associated with the house are paid, the two parties can split the money.
One party keeps the home
You can work out property distribution issues by allowing one spouse to become the owner of the home by refinancing the mortgage. Refinancing ensures that the other spouse is no longer on the mortgage, which means the home is no longer a joint asset. Refinancing can also pay off existing mortgage debt and make it possible for one spouse to afford the home if the house was originally purchased based on two incomes.
Both parties keep the home
Sometimes, the market isn’t right for selling a house, and a divorcing couple may owe more than the home is worth. If the separating spouses can’t afford to live separately yet, they can continue to share ownership of the home. It may be preferable for one spouse to move out and continue paying the mortgage until the children are no longer minors. Once the children move out, the couple can sell the house to split the profits, or one ex-spouse will buy out the other ex-spouse’s equity.
Couples should make arrangements for the marital home early in divorce proceedings to make property division as efficient as possible. If they cannot agree, they might have to go to court for a judge to make the decision for them.