When spouses decide to divorce, they have to divide their property. If people bought their house together, it is one of the assets they need to divide. There are many ways that people can handle the house.
Before people decide what to do with their house, they should get an appraisal. Homelight says that an appraisal can help people understand the current market value of their home. The value of a house may change significantly over the years. An appraiser walks through the house, evaluates the features of the home and estimates the value. The results of the appraisal allow people to divide the home’s value fairly.
What if one spouse wants to keep the house?
Sometimes, one spouse may want to stay in the family home. Nerd Wallet says that this person has to become the new legal owner of the house. To do this, he or she has to take out a new mortgage. In this situation, people need to know the current value of the house because they have to purchase their spouse’s share of the property. Taking out a new mortgage allows people to buy out their spouse and put the house in their name only.
What if spouses sell the house?
People may decide that selling the family home is the right option for them. In this situation, the current market value helps them to set a competitive price for the house. The purchase price usually pays the rest of the original mortgage of the home. Spouses can then divide the rest of the money between them.
If spouses do not agree about the value of the house, they may want to hire two separate appraisers. A court can determine which appraisal most closely reflects the current market value.