Divorcing a partner can be one of the most trying periods of your life and emotional upheaval can be increased by the logistics of dividing a major asset such as a home.
One of the first things that you need to do is to use a realtor for a preliminary market valuation or hire an appraiser who could provide you with a detailed evaluation analysis of your home and how much it’s worth. Options:
- One party keeps the home and refinances;
- One party keeps both the home and the mortgage; and,
- Selling your home.
Once you have this value, subtract the outstanding balance owed on the mortgage, and you will get to the current amount of equity in your home. We will be able to assist you with this process as well.
You or your ex-spouse can request to have the mortgage refinanced
If one of you want to remain in the home, you and your ex-spouse can request to have the mortgage refinanced. In most cases there’s a buyout, so the one who remains in the home, has to raise more money to pay the other party out.
One party keeps both the home and the mortgage
The individual keeping the home, must prove they can manage the mortgage debt on their own
Selling your home
This could be the simplest approach since you will be left with the net proceeds, after paying all the selling costs (realtor & legal) and property debts (mortgages and HELOC). The proceeds will be split according to what were agreed upon in the separation agreement. You will now know exactly the amount of funds you have available to purchase a new property.
Being responsible with your finances during this time, will give you access to the best possible options when it comes to splitting the mortgage. Don’t delay, contact our mortgage brokers to assist you with your choices.