Colorado is well-known for its valuable real estate, and if you are currently navigating your way through a divorce, you must consider how to divide your home equity. Most homeowners working through divorces choose to divide their home equity in one of three distinct ways.
Before you decide on one of these methods, though, you should think about having your home appraised. It may, too, benefit you to have your former partner secure his or her own appraisal, too, because doing so may increase the chances of accuracy and both of you taking away everything you deserve. Once you have the appraisal, how might you consider splitting up your shared home equity?
1. Sell your home and split the profits
Selling your home and dividing up any money you make on the sale is arguably the most popular way former married couples split home equity in a divorce. Selling your home allows you to leave bad memories of your marriage behind, and it also may give you the down payment or security deposit you need to move elsewhere.
2. Consider sharing the house for now
If market conditions are unfavorable, or if you have children who may move out of the family home shortly, you and your ex may decide to hang on to the home and take turns sleeping in it. You always have the option of selling it when the market improves or the kids move on.
3. Buy out your ex, or vice-versa
If only you want to keep the home, or conversely, if only your ex does, you may be able to refinance the mortgage and get it only in the name of the party that wishes to stay. If you are considering this option, getting those two appraisals is a particularly good idea, because it should help you come to an agreement on the true value of the property.