Deciding what to do with the family home after divorce is often a challenging process. After all, that home is often one of the most significant assets a couple has. Making the right decision about its future means considering all of your options.
There are several ways to settle the family home in the event of divorce.
Sell the property
If neither of you wish to keep the home and you would rather simply split the proceeds of a sale, that allows both of you a clean break with a fair division of the assets. Some couples choose to sell, but opt to defer that sale until their children graduate. This allows the children to remain in their family home throughout their school years.
Buy out one party
If one of you wishes to keep the home, they can buy out the other’s interest in the house. You will need to consider the current market value and any outstanding mortgage to determine a fair amount. Sometimes, couples decide to trade full ownership of the family home for a second property or other significant asset as a buy-out alternative.
If you wish to maintain stability for your children, you might decide to maintain co-ownership of the home for their sake. Sometimes, this leads to birdnesting agreements for custody as well. As an alternative, co-ownership also provides the opportunity to rent the home and split the proceeds. The average rental rate in Nebraska is $1,295. This provides couples an opportunity to pay off an outstanding mortgage if they have one while also gaining a profit.
When deciding how to handle your family home in your divorce, consider your financial position, the value of the home and any personal preferences as you choose the right solution.