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Out of House and Home: Dealing with the Marital Abode |
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You and your spouse can also work together to deal with the house. You will, of course, need to have the house appraised. You can each hire a real estate appraiser to value the house, and then take the average of the two values. Or, if you both trust and like the same person, you can save money and hire one person. Some couples each choose an appraiser, and ask the appraisers to choose a third appraiser, who's valuation will be binding. |
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You have to subtract the mortgage from the value of the house, of course, to figure out what your home is worth. When you have that number, what then? You need to make some decisions. |
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Do you, as a divorced couple, want to continue to carry the houseand can you afford to? If the answer to both of these questions is yes, you will have many issues to resolve; but at least in terms of the house, you are set. |
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If you cannot or will not carry the house, you will have to make the difficult decision to sell. Before you place your home on the market, however, consider these relevant points: |
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Will my spouse or I be able to find comparable or sufficient housing at a lower monthly cost? Remember, mortgage payments are tax-deductible, and rent is not. You may be better off paying a higher monthly mortgage than a slightly lower rent. However, when insurance and taxes are figured in, renting might be cheaper. |
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Are we selling at a loss because of the divorce? If we hold onto the house a year or two longer, might we do much better? |
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Does the house require significant work? Will a renovation make it more marketable, and if so, do we have the funds to pay for the work? If not, you may decide to hold onto the house for noweven if you rent it to someone elseand sell up the road. |
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Will a move be so disruptive to the children that holding onto the house becomes an option, even in the face of financial sacrifice? |
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Are you or your spouse close to age 55, so that you can shelter part of the gain upon sale? If you are close to the age when the IRS lets you shelter a chunk of the gain, you might want to |
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