During a divorce proceeding in New Jersey, several topics require discussion, including what to do with the family home. For many divorcing couples, their home represents their most significant asset and holds sentimental value for all parties involved. Several options are available for individuals going through a divorce who must decide what to do with the family home.
Some couples decide that dividing significant assets is the best approach to dealing with the family home during a divorce. If the spouses share a second home, stock portfolio or art collections, they may choose to divide everything equally, ensuring that each spouse walks away with assets of similar value. Dividing significant assets can be quicker than waiting for a property to sell or engaging in lengthy negotiations to determine ownership percentages.
Buying out the home
If neither party wants to sell the home, they can buy out the other. The buyout amount may be more or less than 50 percent of the market value. This eliminates the back-and-forth debate, ensuring a smoother divorce process. It is important to note that the party buying out the other must have access to sufficient cash not subject to the divorce proceedings and have enough income to afford the mortgage on the home.
Co-owning the home
The couple may agree to co-own the home if the divorce conditions are amicable. In this arrangement, each party will contribute a percentage of the mortgage payments, and together they will decide what to do with the proceeds if the home is sold.
A forced home sale can be stressful and emotional for everyone involved in the divorce. If a couple can reach a mutual agreement on how to divide the property, it can help avoid much heartache.