When Maryland couples decide that it’s time to go through a divorce, they have to get down to the nitty-gritty of how they’re going to split their assets and liabilities. One of the biggest concerns of both spouses is what happens to the marital home. Trying to come to an agreement on what happens with the house and the mortgage can be a bit difficult to do, especially if you’re unfamiliar with the different options that you have.
Refinancing the mortgage under one name
If you come to the decision that one spouse will take ownership of the marital home, an easy option is to have that spouse refinance the mortgage. During the refinance process, the mortgage will be put into one spouse’s name. This will alleviate the other spouse’s name from the mortgage and the financial liability of it. An attorney can typically craft a quitclaim deed that can remove one spouse’s name from the title during the property division process.
Sell the home
In the event that neither spouse wants to remain living in the home or both spouses want to live in the home and cannot agree on who gets it, selling it may be the only option. When a home is sold, the remaining mortgage balance can be paid off. The profits will be split between the couple in an even fashion. This option can also be used when neither spouse can afford the mortgage payment on their own.
Buying out the other spouse
In the event that one spouse wants to keep the home, they can buy the other spouse’s interest in the home. The buyout amount will highly depend on the value of the house and the equity that the couple has in it. This option does require a lump sum of money.
Dealing with your marital home during a divorce can be a lengthy process. It may require selling, refinancing or even using a lump sum of money to buy out the other spouse. You should take adequate time to think about what’s going to work now and in the future in regards to your marital home before making any quick decisions about what you’re going to do with it.