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How can you buy out your spouse’s interest in the family home?

| Aug 29, 2020 | Divorce |

In most marriages, the family home is the largest asset. This means that when you divorce, it can also be the source of the most stress. Not only is it a lot of money on the line, but most people attach emotionally to their home. It is up to you and your spouse to decide whether it is possible for one person to keep the home. 

According to Forbes, you want to keep the home, you may have to buy out your spouse’s interest. 

How to pay your spouse

Florida is an equitable distribution state. This means that the courts split all property in a fair way. This does not equate a 50/50 split. Say that you had separate assets prior to marriage and you used some of this money to put a down payment on the home. When determine the buyout price, you can subtract this cost from the value of the home. 

How to apply for a mortgage

To complete the buyout, you have to apply for a mortgage. You may be able to use other assets to reduce the mortgage that you apply for. If not, you can always use cash from the property for the buyout. 

How to refinance your home

Sometimes one spouse will choose to refinance the home before the pair finalizes the divorce. To do this, you have to qualify on your own, without your spouse’s income. If you want to do this early, it can settle the house issue right away. Sometimes, the family home causes a lot of conflicts and it is better to make decisions as early as possible.