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3 options for handling home equity in a divorce

On Behalf of | Aug 25, 2022 | Family Law |

When you and your New Jersey husband or wife decide to split up, part of the divorce process involves figuring out what to do with any assets and debts you currently share. If you and your husband share a home together, figuring out how to handle it moving forward may be a key consideration. Ultimately, the option that may make the most sense for you is going to depend on certain variables, such as whether either of you wants to keep the once-shared home.

NerdWallet notes that most former couples decide to handle their home’s equity by taking one of the following three steps.

1. Selling the home and splitting the profits

If neither you nor your ex feels any deep connection to your marital home, consider putting it on the market. Once you sell it and pay off your mortgage, you may split any remaining proceeds between you.

2. Having one party refinance the mortgage

If one of you wants to stay in the home and the other has no objections, that party might try to take out a new mortgage on the home in his or her name only. Whether this is a realistic option depends largely on whether whichever party wants to stay has the means to qualify for a new mortgage alone.

3. Waiting temporarily for conditions to change or improve

Sometimes, market conditions, interest rates or similar factors make it an inopportune time to sell or refinance a home. In this situation, you may want to think about trying nesting or similar arrangements until things get better.