Friday, August 13, 2010

What to do with your home in a divorce

What are we going to do with the house? -- Clearly one of the biggest questions a couple will ask themselves when going through a divorce. Oftentimes the homes it the most valued asset a divorcing couple has. It can also be the highest sources of contention during and after the divorce.

One of the first things you will need to do is find out how much your house is worth in today's market. You could start at and get a preliminary picture of the price, but you will have a much better answer if you call a Realtor and ask for a broker price opinion.

If you owe more than your house is worth, there are several options to consider: stay in place (if you can afford to) until the market improves, rent the home, apply for a loan modification, short sale the home, or allow the home to go into foreclosure. Each option carries financial and legal risk and should be discussed with your Realtor, CPA, lawyer, and financial planner.

If you have equity in the home you may decide to have one spouse stay in place or refinance to pull some of the equity out to "buyout" their ex. The other tried and true option is to sell the home, divide the proceeds and move on. Whatever you decide to do, make sure you have had competent counsel from professional help.

Keep moving forward.

-Kurt Groesser
Keller Williams DTC

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