A Guide on How to Keep Your House in a Divorce
Whether it’s your first divorce or your second, you’re still dealing with some new heartbreaking challenges. If it’s your first divorce, you may be wondering exactly what to do.
If you’ve experienced a divorce before, you’re wise enough to prepare for the worst. But, you’re still not sure what the worst entails since it’s unique to your situation, your finances, and your relationship. Like any other loss, divorce separates a grieving process, and there’s a grieving process you need to know.
We created this simple guide on how to keep your house in a divorce. Keep on reading!
Use a Quit Claim Deed or Refinance
A quit claim deed is a legal document that transfers the ownership of a property to one spouse from the other. This document can be used instead of a divorce process decree as it essentially cancels out the ownership of both spouses by transferring all of the ownership rights to one. Refinancing the property may be a better route if the couple still wants to remain joint owners.
Tap Into Your Home Value and Equity
One is to take out a home equity loan, often referred to as a second mortgage. This loan uses your house as collateral, meaning your lender will have a lien on your home.
You can take out a fixed-rate loan or a line of credit with a variable rate and use the money you receive for a variety of things, such as bills, living expenses, or a down payment on a new home. Another option to tap into your home value and equity is to refinance your current mortgage.
Consider Buy Outs and Assets
In getting a divorce, it’s easy to think of selling the house as the only option available, but it doesn’t have to be that way. Buyouts, assets, and other options, such as refinancing, can be considered. Both parties can agree to a buyout where one party keeps possession of the home and the other person’s interest is wiped out in exchange for cash.
Review Premarital Agreements and Non-Marital Property
It is also important to review the non-marital property and determine who owns it. Each state has different laws regarding community property and it is important to determine which property is considered community and which property can be considered separate or non-marital property.
Both spouses should also review any inheritance or gift from previous spouses and any trusts or other trusts to make sure that these assets are divided appropriately. If you want to know more about your situation, you can look here for more details and get help from professionals.
A Few Tips on How to Keep Your House in a Divorce
Following these strategies can help you if you want to know how to keep your house in a divorce. If you are considering a divorce, it is best to talk to a lawyer to determine the best approach to keep your house. Don’t hesitate to get legal help if you’re feeling uncertain or overwhelmed during a divorce – it will help protect your interests in the end.
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