There are rare situations in which two people get divorced and decide to remain joint owners of their home. It is far more common for people to simply sell the home and divide the money that they earn, or for one person to buy out the other person’s share and get to keep the house on their own.
But in those situations where keeping the house seems to make more sense, you may find yourself wondering why. Maybe you’re facing divorce yourself and you want to know if this is a viable option. What benefits does it provide? Why would people do it?
Selling for a higher price
One reason to do this is because you may think you can sell the home for a higher price in the future. It’s all about the local market. People who decide to get divorced as the housing market goes into a recession may decide that they want to try to ride it out so that they can get more for their asset when they sell it months or even years into the future. This means they have to remain as co-owners until that time.
Keeping the kids in the home
Another reason that couples will sometimes do this is if they have children together. The children may want to stay in that home, especially if they are older and they want to remain near their neighbors and their school system. Parents will sometimes agree to own the home together until the children all go to college, and then they can finally sell the house and split the money.
If this is something you’re considering, just make sure you know what legal steps you will need to take at the end of your marriage.