When you divorce your spouse in Missouri, you will undoubtedly need to determine which one of you will keep certain assets, and in most cases, the most valuable asset a couple shares is their home. Therefore, one of the more important matters you will need to work through during your divorce is what you plan to do with your family home, and you will typically have several options available to you in doing so.
Per NerdWallet, most divorcing couples choose one of three different options when figuring out what to do with their shared home when they divorce. The first, and arguably, easiest, scenario involves simply listing the home for sale and then dividing the proceeds between you and your ex when it sells. This gives you both the opportunity to put any money you make on the sale toward a new home or rental property of your own.
A second option involves having one party stay in the once-shared home while the other party vacates it. In most cases, you can accomplish this by refinancing the mortgage and excluding the party who no longer wishes to live there. In some cases, though, this can prove difficult, because the party who wishes to remain in the home may not be able to qualify for a new mortgage on his or her own.
A third option for dividing home equity, meanwhile, involves having both of you keep the home until the market improves for a sale. This can lead to complications, however, as you probably do not wish to live with your ex once your divorce becomes official. In other situations, divorced parties sometimes choose to remain in the home together for a set period because they wish to, for example, give a shared child a stable home life until he or she leaves for college.
This information about your options for dividing home equity amid divorce is educational in nature and not a substitute for legal advice.