What Do Spouses Choose To Do With Their House After Divorce?

Figuring out what to do with the real estate in divorce can evolve into a source of big disagreement between the splitting parties. It might seem that the easiest way to take care of the situation is to sell the home so that the spouses can split their equity (if any), and simply walk away. But, this is not necessarily the most feasible option for the house after divorce.

There are those times when the balance owed on the home outweighs its current market value – and to sell it would constitute a “Short Sale” possibly creating more debt and heartache for the homeowners. Other times, the real estate price trends of a buyer’s market paired with the costs of preparing the home for sale may overwhelm the finances of the two individuals.

In cases such as these, hanging onto the property becomes the wiser choice for the divorcing spouses so they can avoid that possibility of potentially incurring additional monetary obligations associated with selling the house in a divorce. Another reason two spouses may lean towards keeping the house in a divorce is because there are minor children involved. How do the children influence the final decision made regarding what happens to the house in a divorce? A majority of adults feel that one way to minimize the stress the minor children experience in a divorce situation is to make arrangements for the parent with primary custody to remain in the residence with the children.

In addition to relieving turmoil, this is done in order to provide the children with a greater sense of security and stability while witnessing the separation of the family. The total amount of child support paid from one parent to the other may also provide justification for making the choice of not selling a house during a divorce. It is not uncommon for two spouses to come to the agreement that if one parent remains in the marital residence with the minor children, the other parent responsible for child support will then be able to either shell out fewer dollars as a result, or forego the payments altogether. On the other side of the spectrum is that group of splitting couples who already know that they want to sell their home. What are some of the factors behind the decision to let go of the family home? First, the home might be too big for just one person to inhabit. And it is not only the size of the place that creates this issue, as the overwhelming expenses that come along with the upkeep of a large living space are often too much for a single party to cover on his or her own. Relocating closer to family and friends after a divorce is another common reason estranged spouses opt for the selling route when it comes to their home.

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