Knowing how to handle your home when you’re getting divorced in New York requires you to closely weigh your options and examine the situation. Some of the factors affecting your decision will likely include the equity you have in the property and how the home was financed. Without the possibility to split this asset, some tough decisions will need to be made.
Choosing who stays in the home could be challenging
If you or your spouse wants to stay in the home after you’ve divorced, the first step is to determine if the chosen recipient can afford the cost. If you’ve already lived on the property for several years, repairs may be required to keep the house in tip-top shape. Taking these costs into consideration is necessary over the long term.
Using a quitclaim deed is common
Refinancing your mortgage is a popular option you might utilize when you’re getting divorced. Using a quitclaim deed to take one of you off the title is a quick way to exchange this significantly large asset. Using a cash-out refinance loan as part of the process will allow one of you to receive a fair value in cash equaling the equity in the home that the other person is keeping. However, taking this action will likely require you to have enough equity in the home.
Selling your home
When you don’t have enough equity built up, you’ll probably be required to sell your home. Doing so can also solve any disputes associated with the property’s value. When taking this route, it’s essential to consider other costs related to the following:
- Realtor commissions
- Expenses for sprucing up the property to attract buyers
- Capital gains taxes
- Real property transfer taxes
Working together to develop a solution is best when you’re getting divorced and need to deal with your home. It may not be easy to compromise with your soon-to-be ex-spouse, but it is more likely to result in a fair outcome for both parties.