When you have been married for a number of years before divorcing, you and your partner have probably amassed numerous assets. Traditionally those assets are divided equally between the ex-spouses. This isn't always as easy as it sounds. Family houses for example, can not be physically divided. The cash from a sale can be distributed between the two parties, but that might not be the best idea for you. This is one of the questions about divorce real estate Orange County CA attorneys deal with all the time.
Whether or not to sell your home depends on a variety of factors. You and your spouse can decide to hold the asset jointly. This might work as long as you are both communicating.
This is usually not a long term solution though. If you are going to be the one in the house, you will probably also be the one responsible for the mortgage payments, taxes, and interest. It's important to feel comfortable that you can handle this financially.
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 or not to sell your home depends on a variety of factors. You and your spouse can decide to hold the asset jointly. This might work as long as you are both communicating.
This is usually not a long term solution though. If you are going to be the one in the house, you will probably also be the one responsible for the mortgage payments, taxes, and interest. It's important to feel comfortable that you can handle this financially.
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.
About the Author:
Get a summary of the things to keep in mind when picking a divorce real estate Orange County CA agent and more information about an experienced Realtor at http://www.meritagerealtyinc.com/services today.
No comments:
Post a Comment