Divorcing Maryland couples will need to address the question of how to deal with the family home. This is often one of the most difficult questions because both parties may have an attachment to where they were living. This is a decision that must carefully be thought through because it could have long-lasting financial consequences.
You can keep the home, but do not become “house poor”
First, if you want to keep the family home, you must consider whether you have the financial resources to do so. It gets much harder when two households need to be sustained on the same two salaries that supported one in the past. Your financial situation will be worse after the divorce is final. Keeping the house could stretch your budget and leave you “house poor.”
Your options about what to do with the family home
There are several options for dealing with the home. One of the spouses may not even remain in the home at all. The house can be sold and the proceeds split between the spouses. If one wants to remain in the house, they will need to pay the other for their share of the equity in the home. Alternatively, the split of the rest of the marital estate could factor in how much the spouse remaining in the home would owe the other for their share of the residence. Finally, both spouses could leave the home, and they could rent it out while selling it in the future.
The real estate market is as hot as can be right now, and you need to think about that when making decisions. Home valuations are very high, and this includes your own home and the one that you may want to purchase. You should review your options before you make any decisions and take a close look at your budget to see what you can afford.