What To Do With The Marital Home For The Self-Employed
It is very important to decide what to do with the marital home after the divorce. If, as a self employed spouse, you are the one earning more or you are the only earning member in the family, you will not only have to pay child support but also potentially spousal support. So, it is a possibility that your decision regarding the house will be influenced by how much you need to pay as support.
The house will imply a lot of financial expenditures like payments of mortgage, taxes and insurance. Ideally speaking, you should not make all these payments and not get to live in the house and pay child and spousal support on top of that.
Generally speaking, there are 3 things that you can do with the house –sell it, buy it from your spouse or your spouse buys it from you. You could also opt to stay in it but moving out is financially advantageous. You should decide what to do with your house after you have established what your financial situation is.
Sell or defer – If the mortgage has been paid or your child support payment will not get affected by the mortgage payment you have to make, you can decide not to sell the family home. If the house has good equity and the market is favorable, it is a good idea to agree to sell the house and make considerable financial gains.
Threat of defaulting on the mortgage – If you cannot afford to pay the mortgage and fear that a foreclosure is likely, you should look to sell the house. The house should not go through a foreclosure if it has equity.
Trade assets for the house – You can choose to buy the house from each other by trading assets in exchange of the house. The exchanged assets should amount to 50% of the equity. Take the help of a financial advisor regarding this.
If you are not ready for a buyout for financial or other reasons, then your spouse may get to keep the home and you agree to help him or her take over the mortgage. You must determine if that makes financial sense for you.
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