This may come as a surprise to some, but many former couples choose to co-own their marital home after divorce. This is especially true if they have children together and do not wish to uproot them.
A former couple may also choose to co-own their home if the real estate market is weak at the time of their divorce. There are distinct advantages and disadvantages for home co-ownership that should be made known before making a decision.
Home Co-ownership Advantages
The advantages to co-owning a house after divorce are:
- their children (if they have any) will have any easier time adjusting to the divorce if they get to remain in the home;
- the custodial parent could slowly buy out the other while still in the house;
- they can wait to sell the house until the market is doing well, to get the most out of their investment; and
- they can rent the house to a third party and split the income.
Home Co-ownership Disadvantages
Unfortunately, the disadvantages outweigh the advantages of co-owning a former marital home; however, that doesn’t mean doing so is impossible. If the former couple can find a way to manage the home together in a constructive way, it could work.
The disadvantages to co-owning a house after divorce are:
- sharing mortgage also means sharing debt; if one person isn’t keeping up on mortgage payments it could negatively affect both parties’ credit scores.
- co-owning a house means regular communication; if a former couple never got along it could make decision-making more difficult.
- if one spouse is still living in the house while co-owning, the other might decide they want to sell. If the spouse living in the home cannot currently afford to buy out the other, this could create a problem that will be taken to court.
- one or both exes could go through bankruptcy. If this happens, the share of the bankrupt spouse could be seized with their other assets, which could end up in a forced sale of the home.
Goldweber Epstein LLP Can Help
There could be difficulties attempting to co-own a marital home with your ex-spouse. Our property division attorneys can help you draw up an agreement to help you and your ex manage your home in the best possible way.
Contact our firm online or call us at (917) 809-7669.