A divorce can be emotionally draining as the couple evaluates their assets and divides them accordingly.
In addition to dividing such things as furniture and bank accounts, they will need to decide what happens to their home. This is usually addressed through one spouse buying out the other, for which they will need an appraisal of the home’s worth, and the purchasing spouse will have to see if he or she can qualify for credit. If the spouse does not qualify or if the couple argues over property value, the home will need to be sold. Another option is to put the residence on the market and divide the proceeds. In any case, several tips can help the property division process go more smoothly. Divorce planners recommend that the couple continues to pay all bills.
If they do not, both spouses could suffer because they might later struggle to qualify for home loans. Whichever spouse paid more can ask for repayment of any bills during the divorce settlement. It is also recommended that the couple separates their finances and accounts and establish individual savings, loans and accounts. If one spouse does not have credit, he or she should work on establishing it as soon as possible so a home loan will be obtainable in the future.
A mortgage company will not give someone a home loan until their separation or divorce has been finalized, so this should be completed quickly. While keeping the family home could hold certain advantages, it can be expensive. A family law lawyer might be able to help a client who is trying to decide whether to buy out a spouse’s portion of the family home or sell it.
Source: Castanet, “Planning a divorce?“, April Dunn, May 24, 2014