Deciding what to do with the family home can be one of the most complex decisions a couple in Maryland has to make in the property division process. Not only does the family home hold sentimental value, but it also is often one of a couple’s most financially valuable assets. The following is an overview of what to do with the family home in the event of a divorce.
One party keeps the family home
Oftentimes one party will keep the family home. The other party will either receive assets of an equivalent amount in exchange, or the party keeping the family home will buy out their ex’s share in the property. If so, the party keeping the home will have to be able to afford a buy-out. In addition, the party keeping the family home will likely have to refinance the home, so the mortgage is in their name only. Finally, those considering this option will want to ensure they can afford home ownership on a single income post-divorce.
Both parties keep the family home
A more unusual option that may work for some is to have both parties retain ownership of the family home, and then sell it at a later date. This may be desirable if a couple has children they want to continue raising in the family home. Then, once the children are grown, they will sell the home. Keep in mind that this option tethers the parties to one another, so they will have to be able to communicate effectively and agree on who is to maintain the home, pay the mortgage and pay other costs associated with home ownership.
Both parties sell the family home
Sometimes both spouses simply want a clean break from one another and want to rid themselves of the bad memories associated with the family home, or neither party can afford to keep the family home on their own. If this is the case they may decide to sell the family home and split the proceeds. Keep in mind that, depending on the situation, they may owe capital gains on the sale.
Learn more about the property division process
Ultimately, the property division process can be complex, especially when real estate is involved. Individuals going through a divorce in Maryland often find it useful to discuss their situation with an attorney. Our firm’s webpage on property division may be of use to those seeking a divorce in Maryland.