When you and your husband or wife bought a Florida home together during your marriage but then decide to split up, you need to figure out what to do with any equity you have amassed in the home since your purchase. You have several options regarding how to handle the home equity in divorce, but most people in your shoes decide to handle it in one of several specific ways.
Get an Appraisal to Determine Home’s Worth
According to NerdWallet, one of the first things you should do when you know you are divorcing is to have someone do an appraisal to give you a sense of the value of your property and how much equity you have in it. Then, once you understand its worth, consider taking one of the following steps.
Sell the House
Unless one of you feels a deep attachment to the marital home, it may make things easier for everyone if you put it on the market. Then, when it sells, you may split any profits you make between you, giving each of you something to work with while you find a new place to live.
Refinance the House
If one of you does want to keep the home and the other does not object, a good solution would be to have that person refinance the mortgage into just his or her name. In doing so, the new loan taken out replaces the old mortgage debt and gives the party who wants to stay a chance to buy out the other party’s share in the home.
Sometimes, due to market conditions, mortgage rates, or other factors, it makes sense to hold off before selling or refinancing until conditions improve.
A Tampa Divorce Lawyer Can Help
For more information on home equity in divorce or how to avoid divorce loans, contact one of our experienced Tampa divorce attorneys.
