When your Arkansas marriage reaches its end, you and your former partner must figure out how to divide up any assets and debts you currently share so that you may transition into living life on your own. For many former couples, the home they share is among their most valuable assets, so it is important to understand your options when it comes to handling this aspect of your split.
According to Bankrate, while every divorce is different, many people facing similar circumstances choose to make one of the following moves when it comes to handling the mortgage in a divorce.
Sell the home, split the proceeds
If you are facing a reasonable real estate market and neither you nor your ex wants to stay in the home you once shared, consider placing it on the market. When it sells, you should have an opportunity to pay off the old mortgage debt and then divide whatever remains between you and your ex.
Have one party refinance the mortgage
If you or your ex do want to keep the home you shared together, that person has to qualify for a new mortgage loan without the other. The new loan should free up enough funds to buy out the other party’s mortgage interests.
Wait for the market to improve
Sometimes, it may not be a good time to sell your home, and selling it may lead to a financial loss. In this scenario, you and your ex may want to think about “birdnesting,” or splitting the time you spend in the home you once shared, until market conditions improve.
The decisions you make amid divorce with regard to your mortgage may have long-term implications, so think everything through carefully before making any final decisions.