Splitting the home after a divorce

On behalf of Stange Law Firm, PC posted in divorce on Thursday, February 2, 2017.

Divorcing couples in Missouri who don’t plan for their separation can make many costly mistakes. In order to make the best choices about their homes, it is important that separating spouses think objectively and make decisions based on logic rather than emotions.

When divorcing, individuals generally have just a few housing options, each of which has certain financial implications. They can decide to retain ownership, the house can be sold and the proceeds be divided or one spouse’s ownership can be purchased by the other spouse.

When a home is placed on the market, homeowners should focus on making the most of its selling price. During the marketing process, a real estate agent can be consulted for professional guidance. Each party should be aware of what his or her net proceeds will be. The exact amount will depend on who made the down payment, relevant property laws and the terms of the divorce settlement.

Spouses who decide to buy out the other will have to determine how to meet their monthly household expenses on a single salary. Refinancing on one salary may also be a challenge if the original loan was qualified for two salaries.

Spouses who are bought out should keep in mind that if the loan is not refinanced, they may still be liable for the balance as a co-signer. The liability of the home may also make it difficult for a divorcee to qualify for a new mortgage on his or her own.

A divorce attorney may help a client resolve disputes regarding property division. The lawyer could litigate or negotiate to arrive at settlement terms that are beneficial to the client.

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