Pennsylvanians who are getting a divorce will need to consider many factors. In particular, property division can be significantly complex. One issue that is rife for dispute is splitting the marital home. If the parties are agreeable to a negotiation, a buyout is a viable strategy to avoid a long-term battle over ownership.
When thinking about a buyout, calculating how to go about it is essential. Home value might be the first thing people think about, but the equity is the gauge for how much to pay in a buyout. A house worth $250,000 with a mortgage of $100,000 leaves the parties to split the $150,000 equity. An accurate appraisal is important to get the home’s market value. Comparable properties, the condition and more will be used to determine its value. Each party has the choice of getting their own appraiser or agreeing on an appraiser.
A home inspector will search for infestations, damage, items for repair and other aspects that will impact the price. When substantial repairs are needed, that could be part of the negotiation. Many cannot pay for a property out of pocket, so they may need to refinance. Another way spouses can defray the cost is to trade assets such as savings accounts, vehicles or investments in exchange for the title to the home. Ultimately, the homeowner must remove the former spouse from the title. A quit-claim deed could be the simplest strategy to do this.
During a divorce, it is important to think about all the variables. That includes dealing with the marital home. With property division and other parts of a divorce, it might be beneficial to have legal representation from the start.