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What to do about the family home in a divorc

| Oct 8, 2019 | Divorce |

One decision some couples in Georgia who are getting a divorce may need to make is what to do with the family home. They may want to sell it, but if one person decides to keep it, they will need to hire one or more appraisers to determine its value. The buyer should also hire a home inspector.

If the home inspector determines that there are issues that need to be repaired, the couple must also decide how they will pay for them. For example, the buyer’s share of the costs could be deducted from what the buyer pays the other spouse for the home. The house may also need to be refinanced. The buyer will need to qualify for a new mortgage. If the buyer is receiving alimony over the long term, it might be possible to include this as part of income to qualify.

Some couples make an arrangement that does not require one person to buy out the other. Instead, one person might keep the home while the other person keeps an asset that is of roughly equal value. Whatever the couple decides, it is important to ensure that the other spouse is removed from both the mortgage and the title. A quitclaim deed or another method may be used to take one spouse off the title.

Because a divorce can affect a person’s financial stability, both individuals should fully understand the implications of property division. For example, the person who keeps the home should be able to afford the mortgage and other expenses on a single income. Some assets may trigger a capital gains tax if they are sold. Retirement accounts may be worth less than they appear when taxes on distribution are taken into account. An attorney may help a person make a financially sound plan for property division.

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