SHOULD WE SELL, STAY, OR HAVE ONE MOVE AWAY

For a majority of couples, the marital home is the most valuable asset purchased during the marriage.  Naturally, when facing a divorce, everyone is worried about the future living arrangements.  A typical conversation in mediation regarding the house often goes something like this:

Spouse 1: “What are we going to do about the house?”

Spouse 2: “We need to sell it immediately; we can’t afford this house anymore since I will need the cash to fund another place to live.” 

Spouse 1: “Well we can’t sell the house, there is too much change and upheaval going on already and the kids need their home for stability.” 

Sounds like they are at an impasse, but there are solutions in mediation that can address both parties needs and interests.  Here are two examples:

1. Buyout by One Spouse: If refinancing is a possibility, perhaps the house will not have to be sold right away, and Spouse 2 can get his/her equity interest in the house paid off as part of the refinance arrangement (and also get his/her name off the original mortgage alleviating concerns of future liability).  A refinancing would enable Spouse 1 to buyout Spouse 2’s interest in the house and could provide the extra cash needed for buying or renting another place. This solution would also address Spouse 1’s goal of staying in the family home while the children are in school.

2. Own Jointly Until the Kids Move Out: This could be accomplished by a “nesting” arrangement where the parents create a schedule as to when each one lives in the marital home with the children vs. lives elsewhere (such as with a nearby relative or in an affordable rental apartment).  Similar to the first solution, this allows the children to stay in the marital home until the children finish school and keeps additional costs down by making the parents’ additional living space less expensive.   

Before you make any final decision about your home, make sure you do your research and know its fair market value.  Get a real estate appraisal done first and move on from there.  Whether you stay or go, don’t settle until you know!

Yes, I am an attorney but I’m not your attorney and this article does not create an attorney-client relationship. This article is legal information and should not be seen as legal advice. You should consult with an attorney regarding your situation before you rely on this information.