Divorce is a challenging process for everyone involved, and one of the most significant concerns is often the question of who gets to keep the house. For many couples, the family home represents a significant investment and a symbol of their shared life together. However, as this blog will explore, there are several reasons why keeping the house during divorce may not be feasible, and why selling the property may be the best option.
The first reason why it may be difficult to keep the house during a divorce is financial. If you have a mortgage, the bank will have approved the loan based on the combined income of both spouses. If one spouse wants to keep the house, they will usually have to refinance the loan into their own name, which can be challenging if they do not have the income to qualify for a mortgage. Even if they can qualify for the loan, carrying a large mortgage on a single income can be a significant financial burden.
Additionally, even if the house is paid off, there are still significant expenses associated with homeownership, such as utility bills, upkeep, and maintenance expenses. These costs can quickly add up, and it’s important to consider whether you can handle unexpected expenses, such as a major repair to the air conditioning or water heater.
Another concern to be aware of is your rights to the property. If you are asked to sign a quitclaim deed to transfer ownership of the property to your ex-spouse, you may be forfeiting your claim and right to the property. However, your name will still remain on the mortgage, meaning you will be held accountable for any missed mortgage payments, and your credit score will be affected. Furthermore, signing a quitclaim deed may mean forfeiting your right to sell the property in the future, potentially losing out on any profit from a future sale.
Selling the house may be the best option for many divorcing couples. This approach allows for the mortgage to be paid off, and any remaining proceeds can be split between the spouses. Selling the house can also provide a fresh start for both parties, allowing them to move on with their lives without the emotional ties to the family home.
It’s important to consider any court deadlines when selling the house during a divorce. In some cases, judges may give a deadline for selling the marital home, and 30 days may not be enough time to sell the property through traditional methods, such as listing on the MLS with a real estate agent. However, selling the property as-is to a real estate investor may be a better option. Companies like Big State Home Buyers can issue offers in just 24 hours and buy homes even if they have issues. This option can help divorcing spouses resolve their property matters quickly, comply with court orders, and move forward with their lives.
In conclusion, deciding what to do with the family home during a divorce can be a difficult decision. However, it’s important to consider the financial and legal implications of keeping the house, and selling the property may be the best option for both parties. It’s also crucial to be aware of any court deadlines and explore all selling options, including selling to a real estate investor.
