Dividing a House part 4- Still Another Option

Dividing a House – Still Another Option

There are options when it comes to your marital home during a DIVORCE, selling right of way is not the only option.

A Delayed Sale :

If you ( or your spouse ) want to stay in the home but aren’t in a position to buy it at the moment, there is another option: arrange to delay the buyout.

In this case, the spouse that stays simply continues making the monthly mortgage payments until they can afford to buy out the other ( or possibly in your settlement, it can be ” bought out” but talk it over with your Financial Adviser on this ), or until the kids move out and the spouse is ready to sell.  ( When there are children still living at home, there is another whole option I will discuss in a future post )

But this option also has its own headaches. Long-terms ones.

A few examples would be, who pays for maintenance, do you have 2 refrigerators, how long will this arrangement be for, what if one spouse starts to date and wants their partner to stay over or possibly move in ?….

If you’re the spouse who’s allowing your former partner to stay in the home, your’re in a vulnerable situation should something go awry.    Other issues can be with regard to the mortgage if there is one.   If both names are on it and your spouse is to pay half the mortgage and defaults, it will adversely effect your credit and you could be held responsible for the other half of the payment.  Talk with your attorneys about the change in Title and Mortgage !!   For that matter, be sure your names are off each others credit cards and have your own separate ones.

The best policy to avoid any messes is to hash through all the what-ifs with a lawyer, and come up with a written plan of action.  Who will do and pay for repairs ?   What if the mortgage payments can’t be made ? When the time comes to sell ?  As long as these worst-case scenarios get addressed, no one is left holding the bag.  Please know, I can also help moderate the terms and then you can have your perspective attorneys look them over before being totally agreed to.