Will You Have To Sell Your Home During A Divorce?
Whether or not you will be forced to sell your home during a divorce depends upon several factors.
If the property is considered a martial asset-meaning it was acquired during the marriage, it is usually subject to equitable distribution, depending on which state you live in.
You may want to buy out your husband's share of the equity in the home during your divorce settlement. Or you may chose to sell the home and share the profits. There are some creative ways to handle the division of your home that you can incorporate into your divorce settlement. If you have small children, you could request that the sale of the home is delayed until your youngest child turns 18 years old. At that point, the home would be sold and the profits would be split between you and your ex husband.
There are several things you need to consider with this arrangement. If you are paying the monthly mortgage, taxes and expenses for the home, then those monies should be deducted from your ex's share at the closing. You may also want to have the home appraised and set the amount of equity to be shared at what your house is worth at the time of your divorce. The home will probably be worth much more years later. Your ex would have to agree to this arrangement and be willing to wait for his share of the equity.
Another option is to waive alimony from your ex-husband if you are entitled to it. You then ask for his share of the equity in the martial home in the divorce settlement. If there is enough equity on his part to cover what you would have received in alimony,you can save thousands of dollars in taxes. Alimony is considered taxable income. The equity in your home is exempt up to $250,000 for a single person who has resided in the home as her primary place of residence for two or more years.
Thinking about selling your home during a divorce can be emotionally draining and can negatively affect your children should you have to move. Think over all options, consult with your divorce attorney and an accountant before agreeing to any division of property in your divorce settlement.