Pennsylvania couples may wonder what happens to large assets like a house when they get divorced. Deciding what to do with a house is a major legal and financial decision. Making the right decision allows the asset to retain most of its value. Making the wrong decision could be extremely costly for both spouses.
There are several options a divorcing couple has when it comes to a house that is used as their primary residence. A common one is for one spouse to buy out the other.
Another one is to sell the house and divide the proceeds of the sale. The risk here is that a considerable amount of the home’s value may be lost if the sale is not done carefully. The home will need to be sold before the divorce can be finalized. If the couple is in a hurry to complete the process, they may need to accept a price lower than what their home is worth in order to sell it quickly.
If neither the buyout nor the selling option is agreeable, then the couple may choose to accept joint ownership of the house. This option delays the financial decision, but it can cause problems later on. The owners will be divorced, but they will have to deal with the house at some point, and they will no longer have the legal structure and protections the divorce proceeding provides.
Choosing what to do with the house in a divorce is not any easy decision to make. It is nevertheless a critical part of the property division process, and family law attorneys will keep this in mind when negotiating these types of settlement agreements.