If you are one of the lucky people who get to live out the American dream by buying and owning your own home, you know how rewarding it can be to have a place of your own. When you are married, real estate property becomes more than a house – it becomes a home. Dealing with your family home can be one of the toughest decisions you will make when dividing your property during your divorce. In many cases, the family home is the most valuable asset a couple owns, both from a financial and sentimental perspective.
Generally, three basic options exist when it comes to dealing with your marital home. You and your spouse can choose to sell the home, one of you can keep the home, or you can both keep the home. Each family situation is unique, so what may be right for one family may not necessarily be right for another.
Sell the House
The easiest way to deal with your family home is often just to sell it. If you and your spouse both agree to sell the home, you can take the equity you have in the home and split it, leaving each of you with part of the profits. The downside to selling your home is that you may owe capital gains taxes on the home if it has appreciated in value. If your home has depreciated in value, you might want to consider a different option.