Making decisions about a family home is one of the hardest choices you will make during your divorce. Not only is it a financial issue, but it is also a sentimental one. The home you and your former spouse worked so hard to acquire will now be split between you.
As explained by U.S. News & World Report, there are two common ways to divide property during a divorce. The challenge is determining which one works for all the parties involved.
Selling the home
Selling the home and splitting the proceeds is often the easiest way to deal with shared property. However, you will also share the costs related to the sale, as well as the taxes for the property. It is sometimes better to sell the home outright than buy out your spouse. If you end up selling the home later, you hold sole responsibility for closing costs and taxes.
Sharing the home
While less common, some former spouses choose to retain ownership and share the home. This entails each spouse living in the home for a certain period of time, then leaving, so the other spouse can take over. Couples with children often share the home to provide their kids stability. The downside is that you must find another place to live part of the time, which is costly.
Homeownership is often expensive, which means some people cannot do it on their own. While it is natural to want to retain ownership of a property that meant so much to you, the best decision is one that allows you to move forward with your life reasonably.