What's the best way to divide a home during divorce? For Arizona couples going through the property division phase of divorce, this may be a particularly pressing question. There's no single correct way to divide a home, and different financial experts may offer different suggestions. Generally, many experts suggest that it's the least complicated financially to sell the home and split profits as the uniform division of cash ensures an equitable share for each person. At the other end of the spectrum is the maintenance of joint ownership. This is unusual, but if a couple has an amicable enough relationship to maintain ownership while living in separate homes, it may be possible to keep the home as an investment property and then sell it later. However, the option requires a couple with the means to find a new residence and still pay to maintain another.
Most often, one spouse pays the other in exchange for full ownership of the home. This can be accomplished with extra funds, taking out a new mortgage, gift money from friends or relatives, or any combination. It may be difficult to determine which spouse will remain in the home while the other moves out, but once this is decided, the rest isn't particularly difficult.
However, this method does have its risks. If the new owner of the home neglects payments without having refinanced to reflect the change in ownership, then the other spouse may suffer damage to his or her credit score. Thus, monitoring credit is very important.
For those who are dividing a home but facing difficulties doing so, it may be helpful to talk to a lawyer about the process. A lawyer with divorce experience may be able to make the process simpler and easier.
Source: credit.com, "How to Divide Your House in a Divorce", Scott Sheldon , July 09, 2014