If you have been married for awhile, and are getting divorced, you and your spouse probably have a number of joint assets. Most of the time divorces require that those assets be divided between the two parties. That's not always easy. When it comes to the family home for instance, the only way to divide it is to sell and distribute the cash profits. You may be wondering if this is the best idea. This and other common questions about divorce real estate Orange County CA attorney hear usually have multiple answers.
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.
It's not always the best solution however. If you want to stay in the home, you have to take a hard look at whether or not you can make the mortgage and insurance payments, and pay the taxes on it every year yourself. There is also maintenance to be considered.
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're going to buy out your spouse, you need to refinance your mortgage. You can get his name off the deed, but getting it off the existing mortgage is another matter. Both you can have credit problems if one or the other of you has problems making the mortgage payments. You will have to qualify for the loan on your own however, and may end up with a higher interest rate. One idea is for you and your ex-spouse to continue to own the home jointly until you can get the house refinanced in your name.
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.
It's not always the best solution however. If you want to stay in the home, you have to take a hard look at whether or not you can make the mortgage and insurance payments, and pay the taxes on it every year yourself. There is also maintenance to be considered.
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're going to buy out your spouse, you need to refinance your mortgage. You can get his name off the deed, but getting it off the existing mortgage is another matter. Both you can have credit problems if one or the other of you has problems making the mortgage payments. You will have to qualify for the loan on your own however, and may end up with a higher interest rate. One idea is for you and your ex-spouse to continue to own the home jointly until you can get the house refinanced in your name.
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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