Should You Consider Co-Owning the Marital Home?
Dividing up assets can be a difficult task, even during amicable divorces. One of the biggest challenges is determining what to do with the family home. You might want to keep the home to preserve your children’s sense of stability, or one spouse may not have the funds to buy their ex out of their share. Should you consider continuing to co-own the home?
When is it a good idea to co-own the home after divorce?
There are a few situations where co-owning your home could be beneficial. Keeping your children in their home is one major reason, but financial issues are often at play, too. For example, if the housing market is bad, you may want to wait until you can get a better price. Similarly, if you’re underwater on your mortgage, you may want to hang on to the property and rent it out to make payments.
In some rare cases, spouses may decide to keep their marital home and rent it out as an investment property. Keep in mind that you’ll need to come to an agreement how to share the proceeds. Most couples exploring this option consider hiring a property manager, so the investment is hands-off.
You don’t have to keep your house forever. For example, you might choose to make a deferred sale when your youngest child moves out or when housing prices increase. It’s important to put this in your divorce decree so there are no misunderstandings later on.
Finally, note that this can complicate your estate planning, credit score and other financial considerations. If you decide to co-own the home with your ex, be sure to talk to an estate planning attorney and financial planner to make sure your affairs are in order.
To learn more about divorce mediation and co-ownership options, call the experienced Long Island divorce mediators at Solutions Divorce Mediation today.