Negotiating A House Buyout During A Divorce

Negotiating a house buyout during a divorce

Negotiating a House Buyout during a divorce. One way that divorcing spouses deal with the family home, is for one spouse to buy out the other’s interests. Often the custodial parent buys out the non-custodial parent so that the children can have the house to stay in. Hi, I’m Rich Barnes. Owner broker of Realty experts in West Dallas, Wisconsin, 53214. The house provides continuity and stability for the kids and you don’t have to sell if the market conditions aren’t good. However, in any buyout, each party bears a risk. The selling spouse may lose out on future appreciation and the buying spouse may end up feeling the price was too high if the property depreciates in the future. A buyout can also be a financial stretch for the buying spouse. A buyout can occur over time, with both spouses keeping an interest in the home for awhile. Whatever the agreement you make about the gradual buyout, you will need to include in your settlement agreement. But often the buyout is completed as part of the divorce settlement. The buying spouse either needs to pay money to the selling spouse, usually by refinancing the home and taking out a new mortgage loan, or gives up marital property worth as much as the selling spouse’s share. How do you determine the value of the home? If you recently had the house appraised, and if you and your spouse have similar ideas as to its value to begin with, you might not have to fuss too much about this. But if you and your spouse can’t agree, you want a little bit more information, you can ask a great real estate broker to provide information about recent sales prices in your neighborhood for houses that are comparable to yours. If you would like to see more videos on real estate and divorce, just click the learn more button below. And as always, you can rely on rich.com. Thanks, and you have a great day.

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