When a Minnesota couple goes through a divorce, one of the most difficult decisions that they often must make is what to do with their home. Divorcing homeowners usually have a few options in this regard, but some may not always be feasible. They may choose to sell their home and split the profits, buy their ex-spouse out, be bought out by their ex-spouse or retain joint ownership of the home.
If one spouse decides to keep the marital home, it may be necessary to refinance the mortgage. However, if two people with two incomes originally purchased the home together, it could be difficult for just one spouse to qualify for refinancing. It is also important to remember that both spouses’ names will remain attached to the original mortgage if the home is not refinanced.
Post-divorce mortgage issues may be avoided if divorcing spouses agree to sell the marital home and divide the profits. However, selling the home is not the best option for everyone, especially if a divorcing spouse wants to minimize change for children. If divorcing spouses do decide to sell their marital home, they may have to work together in order to maximize the return.
Every divorcing person has a different financial picture and different goals for the outcome. A family law attorney may be able to help a client determine whether selling the home or keeping it would be the better option. An attorney may also help a divorcing spouse to negotiate other property division issues relating to investments and retirement accounts.