Divorcing spouses who own a home together must figure out what they will do with their house during their divorce. Many homes are sold during divorces and any resulting proceeds from the sale may be split between the spouses. Some people may not want to sell their homes and would prefer instead to stay in their homes. For people with children, the desire to keep a home may be coupled with a desire to provide some stability for the kids during a time of great change.
Homelight recommends that spouses carefully evaluate their financial readiness to assume full and sole ownership of a home originally meant for a couple or entire family. It is one thing to negotiate a property division settlement that allows a person to get the home in the process but it is quite a different thing to be able to afford the home down the road.
In addition to an honest assessment of the ability to keep up with all costs associated with owning the home, including taxes, insurance, maintenance and repairs, Bankrate indicates that the two spouses will want to ensure their existing joint mortgage does not remain active. The person who will keep the home should request removal of the other spouse from the loan or apply for a refinance or new mortgage in their name alone. The person who will leave the home should require this as it is the only way to alleviate them of financial responsibility for the property.
Similarly, a quit claim deed should be signed by both parties to transfer legal ownership to the person who will keep the house.
