How To Deal With Your House During A Divorce
A divorce can turn your life upside down and force you to deal with financial problems that you may never have anticipated. Your Myrtle Beach property may be a major concern as far as wondering who owes what and who owns what. A mortgage is usually the largest liability for a married couple, and figuring out the logistics can feel extremely daunting. Most people assume they have to either sell their real estate or refinance it, but there are a few other ways to settle the issue.
Sell Your Myrtle Beach Property
Many divorcing couples choose to sell their homes and split the profits equally. If the home was acquired during the marriage, most states will classify it as communal property, especially if the couple paid for it together. It’s also considered to be communal property if the original owner added a spouse’s name to the deed later on.
The sales option is typically the most common choice if the breakup is acrimonious and there is no prenuptial agreement. Agents usually share the fact that the home is a “divorce sale” after an accepted offer, but should get permission from both parties before revealing personal information. Buyers should understand that the particular circumstances may mean the sellers need a few extra days for signing paperwork. Oftentimes the divorcing couple will decide beforehand who will be the primary contact for the agent, although the agent should also keep the other party in the loop with emails and/or phone calls.
Refinance Your Real Estate
Another popular option is for one person to stay in the home while the other vacates it. The party that chooses to stay in the home may ask to buy out the other person and refinance. Some people find this choice to be a bit more complex than simply selling the house. Usually, the party with the higher income can afford to stay in the home as he/she will have to refinance it as a singleton. Other considerations include one’s credit score, debt load, child support, and outstanding loans or payments. Refinancing is a common option if the couple has young children who need to stay in the same schools, but empty nesters tend to want to sell the home as quickly as possible.
Move Out While Staying on the Mortgage
A less popular choice is for one person to move out of the home while continuing to help make mortgage payments on the property. This is only a suggested course if the two trust each other to keep making payments. Many lenders actually won’t allow couples to remove names from the deed unless they refinance. They can later choose to sell or refinance when their financial situations are more favorable. The downside to this type of arrangement is that the future housing market may be uncertain. You never know if the value of your home will drop when you are finally ready to sell it.
A quitclaim deed may be filed to transfer interest, although the person who moved out still has mortgage obligations. Some lenders allow the mortgage to be assumed by the person remaining in the home.
If both parties remain on the mortgage after the divorce is finalized, problems can arise. For example, if one partner keeps the home post-divorce and the other dies, the deceased person’s extended family may have a valid claim on the property. This possibility should be discussed with your attorney before making any final decisions.
Both Stay in the Home
In certain cases, an amenable couple might continue to live together in the home while they divide up other aspects of their lives. It could be a viable option for a while, especially if the home is large enough for two people to have their privacy. “Nesting,” as it’s now called, may be an acceptable arrangement for financial reasons or if there are minor children in the home.
A famous example occurred when newly divorced couple Ben Affleck and Jennifer Garner continued to co-parent while remaining in the same home to provide a more stable situation for their young children. Obviously, their home was large enough so that they rarely had to interact with each other, so this type of case is more uncommon in mainstream America.
The couple needs to be amicable if they want to try nesting because nothing is more aggravating than having to face one’s ex every day if the relationship is contentious. The couple can either trade-off on living at the house for weeks or months at a time, or a spare bedroom can be fashioned from a former guest room or office room. Before agreeing to this arrangement, the couple should specify rules such as bill splitting, grocery shopping, and bringing home dates. Ideally, they should figure out exactly how long they will be living together and what the plan should be afterward.