1. Sell the House Now and Divide Up the Proceeds

Your primary consideration under these circumstances is to maximize your home's selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. 

2. Buy Out Your Spouse

If you intend to keep the house yourself, you'll have to determine how you'll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge. Be mindful the judge could reverse the sale based on the settlement agreement they
hand down.

3. Have Your Spouse Buy You Out

If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won't have
legal ownership.

4. Retain Joint Ownership

Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.

When You Decide to Sell

If you and your spouse decide to sell your home, it will be important to work together through a professional to maximize your return. Differences aside, you both should be present when a listing agreement and pricing is put together. Both of you should understand and sign this agreement, and both should be active in the ultimate negotiations. If the situation is easier to both parties, the agent can have meetings with both parties separately to help mitigate emotional decisions and help make good business decisions for both parties.

When You Buy Your Next Home

Use the proceeds from your previous home or buy out to determine an affordable price range for your next home. Maintain a clear focus on getting the right home to suit your new situation. You may wish to review with an agent who offers a house-hunting service to help find a home that matches your new home buying criteria.

Tax implications to Consider

You will want to consult with a CPA to go over your tax implication for capital gains, a new basis, what your alternatives will be to mitigate taxes owed on stock portfolios. They will help you navigate the best practices to best protect your financial interests moving forward.