The family home is typically a couple’s most valuable asset during a divorce. It also holds a lot of sentimental value for the couple. You and your spouse likely decided in happier times that it was where you wanted to live, and it may be where your children have lived for most of their lives as well. This makes letting go of it and assigning a value difficult.

Due to its importance and value, the house is often the cornerstone of negotiations for a property settlement during a Cherry Hill divorce. By deciding what you will do with the house, you can often put other property issues into perspective financially and emotionally.

When a couple divorces, they often have to deal with the family home in one of the following ways:

Option #1: Selling the House

When divorcing in Cherry Hill, selling the house is a common practice and is often the option required by the court in case of a contentious divorce and both parties cannot reach an agreement on their own. Divorce law in Cherry Hill, NJ uses the concept of “equitable distribution” to divide property, which means after the house is sold, the court divides the equity based in fairness under the circumstances of your case. This means that the split of the proceeds of the house sale may not be the typical 50-50 like in other states.

It comes with a number of disadvantages, including the expense of selling and the fact that children will be forced to move at a difficult time in their lives, but many people would rather have the money from a sale than to keep an asset that reminds them of happier times.

Option #2: Negotiating a Buyout

During a buyout, one spouse gives up their interest in the house in return for cash or a promise of cash in the future. It’s not uncommon for one spouse to be more attached to the house than the other, or for the parent who will care for children to want to stay there with them.

However, buying off the property from one spouse comes with challenges. Assuming the qualification when you bought your home was based on two incomes, it may be difficult to qualify on just one. Your credit score must also be acceptable to the lender. Lenders may also encounter issues if the other party owes substantial debts and/or pays high alimony and/or child support.

Sometimes, a lender won’t remove a party’s name from a mortgage without refinancing. Usually, mortgage assumptions would allow one person to assume the mortgage while releasing the other from any liability.

Option #3: Continuing to Co-Own the House

When a sale or buyout is not the best option, spouses may decide to keep the home and co-own it for a predetermined period of time or indefinitely.

Once a divorce is finalized, the spouses will basically be in a business relationship as co-owners of their properties.

Because you are both responsible for paying the entire mortgage, a credit report for either of you will show the full amount owed. A large debt on your record makes it difficult for you to obtain credit for other purposes, especially if you no longer live in the house. There is also a risk that your spouse will make late mortgage payments, harming your credit rating.

Sell Your House Fast in New Jersey

If you and your spouse have decided to sell the home during divorce, consider opting out of the traditional way of selling and sell your house to a cash home buyer.

At Aim High Properties, LLC, we buy houses in Cherry Hill, NJ fast for cash. We make quick buying decisions so you can sell your house quickly.
Tell us about your house, and we’ll give you an estimate of our cash offer. We’ll set up an appointment to view the property if our cash offer appeals to you. If you are happy with our offer, we’ll close the deal, and the cash will be in your hands within weeks or on a date that suits you.

Get in touch with us, and we’ll help you figure out the best solution for your home. Call us today at (856) 861-6000.