When you and your North Carolina spouse decide to split up, you may wonder what is going to happen to any equity you amassed in your shared home during your marriage. For many former couples, home equity represents one of their most valuable assets, and this is often a key point of contention in property division during divorce.
The options that may serve your needs most favorably might vary based on the housing market in your area, among other considerations. However, you may decide to divide your home equity in one of the following ways.
By selling the home
If you are able to sell your home at a profit, listing it may give you an easy way to make a break from your former partner while also helping each of you come up with enough money to find a new place to live. Once you sell the home and pay off any outstanding mortgage debt or tax obligations, you and your ex may split whatever remains. A family law attorney can help guide you through the process and ensure your rights are protected.
By refinancing the mortgage
Maybe you or your ex wants to keep the home you once shared. In this scenario, whichever one of you wants to keep it might try to get a new mortgage in only one name. Refinancing the mortgage gives you or your ex an opportunity to pay off the old mortgage debt and buy out the other party’s share of the home equity.
Please contact our law firm at Daughtry, Woodard, Lawrence, & Starling for more information about dividing assets and otherwise navigating a North Carolina divorce.
