Questions about my Home and the Divorce:

Should I keep the house?

To answer this, you should take into consideration home size, utilities, payments, family needs, etc. You also need to realize that you will now be entirely responsible for the house payment, upkeep and other related bills. Since you will no longer have two incomes it is imperative that you be aware of what your expenses will be.

How much will I have to pay my spouse if I keep the house?

If your spouse has a marital interest in the home, the equity in the property needs to be determined by an appraiser. The appraised value – minus the costs of selling (commissions and seller closing costs) equals the equity to be split between the parties. This is the amount you will be obligated to give to your ex-spouse.

With the divorce, there may be a court ordered distribution of the equity. This means that you have a specified amount of time to obtain the funds needed to give your ex-spouse their portion of the equity. This can be done by cashing out the equity in the home by refinancing with a new mortgage, or simply selling the home. This is where you need the advice of a mortgage professional.