Deciding how to handle the family home in an Indiana divorce can be the key to a fair division of property. Handling this major asset can make or break achieving an equitable divorce decree. Here are three common ways to address this issue.
Sell the house and split the equity
One of the easiest ways to handle the family home is to sell it and divide the proceeds equitably. This option is particularly effective when both parties agree that the house is marital property. To employ this option, you must get a professional home appraisal to determine the property’s value.
One party buys out the other
If one spouse wishes to keep the family home in a high-asset divorce, a buyout can be a viable solution. This choice typically involves refinancing the existing mortgage loan in the name of the spouse who will retain the property. However, you must evaluate whether the remaining party can afford to refinance, as their income and financial situation will determine eligibility. Remember that the credit ratings of the parties can shift after a divorce.
Consult with a mortgage lender to assess the feasibility of refinancing and seek legal advice to ensure the payment agreement meets state requirements.
Temporary co-ownership with a later sale
A less common but practical option is for both parties to continue co-owning the property temporarily and agree to sell it at a later date. This approach may work if selling immediately would cause significant upheaval, such as when children are involved.
Handling a house in a divorce requires careful thought and professional guidance. By considering these three options, you can choose the path that best suits your circumstances and paves the way for a simpler, more certain, and satisfying future.