When couples get a divorce, one of the assets they have to divide is their house. There are a few different ways people might divide their home.
According to NerdWallet, couples may divide the house by selling it. They would then share the money equally. This may sometimes be the simplest option.
Keep the house
In other situations, people might decide that one of them will keep the house. People need to refinance their mortgage so that only one of them is the legal owner of the house. Additionally, the spouse keeping the home usually needs to buy out the other spouse. He or she may do this by purchasing their spouse’s portion of the equity.
Get an appraisal
Regardless of which option a couple chooses, they will likely need to get their home appraised. According to Homelight.com, the appraisal will help people understand the market value of the house. A home may increase in value between the time of purchase and the time of the divorce. The appraisal ensures that people split the proceeds of the home according to its current value. If one spouse buys out the other, for example, he or she needs to purchase the spouse’s equity according to the current value so the other spouse receives a fair portion of the assets.
Know the process
People may hire an appraiser together or they may each hire someone if there is conflict in the divorce. The appraiser usually does a walkthrough of the home and takes photographs and measurements. This person also evaluates different features of the house, such as the size of the lot, the square footage and the location. All this information determines the value of the home.