For years, maybe even decades, you have been living under the same roof – now you are getting a divorce, and you don’t know what will happen to the place you have called home.
Where Will I Live After My Divorce?
One of the first things people ask when they are starting the divorce and/or separation process is “where will I live after my divorce?” There are a few scenarios that can play out depending on your personal circumstances. If there are school-aged children involved one of the scenarios would be for you or your spouse to stay in the residence for a set period so that the children could continue in the same school. This is called “exclusive occupancy.” At the end of the agreed upon period, one of you could buy the other out of the home or sell the house and split the proceeds. Whether this is workable for your family depends on your financial circumstances.
Sell Your Home Now
A second scenario you could consider would be to sell the family home now, divide the proceeds, and both of you would find new places to live. While this scenario has the benefit of providing both parties with some cash to make a new start, there may be complications if you have children. For one, you may want to consider keeping the children in the same school district if they are happy and successful there, and that would mean at least one of you finding a residence in the same district. Two, if the two of you do not live close to each other following the sale of the residence, there could be difficulties in scheduling parenting time. In any event, you should consider what you currently owe on your mortgage (if anything), the distance you need to travel for work, and the cost of relocation.
Buying Out Your Ex
Another option is for you or your spouse to buy the other out of the home right now, which also comes with financial considerations. For example, as you may need to refinance the mortgage to remove your spouse’s name, the current interest rates for mortgages and the cost of refinancing may be a concern. Rates may be significantly higher than they are on the current mortgage. The higher interest rates make what could typically be a lower, more manageable payment into a much higher one. Another challenge could be qualifying for a mortgage on your own based upon your income.
Always Ask for Professional Advice
Even if you and your spouse are ending your marriage amicably and plan to remain the best of friends, it is always best to hire an attorney and consult with a financial professional on these matters. We are here to help. Call us with questions.
