A divorce is expensive and straining especially because many people find it difficult to maintain separate households. For any couple going through a divorce, it is important to understand the process and examine the options available to them. Most real estate experts suggest that once a couple has decided to divorce, they should not tell their family members first. This is important because it will prevent either party from poor decision making which may have very serious consequences. If you are going through a divorce, do not panic because these tips will help you avoid housing mistakes.
Hire a Collaborative Attorney
With emotions running high, some people make a mistake of hiring a combative lawyer instead of a collaborative lawyer. Equitable distribution laws are in charge of determining divorce settlements. Combative lawyers are likely to make the divorce process longer so it becomes expensive in the long run. When the process is over, you will find that you will have less to split.
Have Access to Important Financial Documents
Ensure that you have important financial documents such as investment portfolio and property, tax returns, credit card statements and bank records. If your spouse tries to sell the property, you can protect yourself by obtaining a restraint order from the court.
Sell the House and Divide the Money
Your main goal is to maximize the selling price of your home. You can consult your realtor if you have any doubts. It will also enable you to avoid the common mistakes that most couples make during a divorce. Ensure that you know what your net proceeds will be; the net proceed is what you get after the split. The ratio in which the split is done depends on various factors such as the divorce settlement, the property laws of your location and the original down payment.
Ask Your Spouse to Buy You Out
If you want to leave and give your house a fresh start, you could ask your spouse to buy you out. However, there are certain things that you may want to consider. If your house is not refinanced, the banks will consider you as a consigner to the property and you will be required to make the payments. Therefore, if you want a new mortgage, this will make it difficult for you to get one.
You Can Buy Out Your Spouse
If you want to keep your house, you can get your spouse a house. However, you should do your calculations carefully and determine if you can afford the monthly payments. If you used two incomes to acquire the old loan, you will be required to refinance the loan which is a very difficult process.
Own the House Jointly With Your Spouse
Most couples post pone a financial decision regarding their home and continue to own the house jointly. While this situation gives you peace of mind for some time, there are tax implications which will require consideration.