When couples in Florida begin the process of dissolving their marriage, one of the major questions they will need to answer is what they should do with their home. It is not always easy to decide as the emotional attachment to the family home is often hard to break. However, as one of the major assets the couple owns, the choices they have should be carefully considered before they decide what to do with the house.
Consider your 3 options
After a divorce, there are three things you can do with the family home depending on your finances, family situation and relationship with your spouse. Your three main options include:
- Keeping the home and continuing to own it jointly
- Having one person buy out their spouse
- Selling the home and splitting any proceeds
Why your finances, family situation and relationship matter
Each decision regarding the family home will be affected by these factors. For example, if one person wants to buy out their ex, that individual’s finances must allow them to get a new mortgage in their name and continue the upkeep of the home. The family situation will also play a role in the decision. If the couple are parents, they might decide that they want the children to continue living in the home to provide stability. If they get along well, continuing to share the costs related to the home will be doable. If they have a contentious relationship, however, this might prove challenging.
Do not forget the tax implications
As you consider what to do with your family home, you should also remember to think about the tax implications. These could change significantly once your divorce is finalized. For example, if you choose to sell your home while you are still married, you can exclude up to $500,000 of your gains when you sell. However, if you sell the home after the divorce, each individual can only exclude $250,000 of the gains.
Making a decision about the family home can be difficult. However, you should try to think logically and avoid emotional decisions.