For some couples divorcing in Kentucky, one spouse would rather give up the house instead of keeping it. Sometimes, doing so makes more financial sense, and there could be personal reasons for letting go of the house.
U.S. News & World Report gives insight on how to navigate selling or giving up the marital home. Releasing the property could be the key to a happier post-divorce life.
Selling the house
If both spouses have no desire to keep the house, it may make sense for them to sell it and split the proceeds. Having a third-party real estate agent list the property could help keep flaring temperatures at bay.
Buying a spouse out
The spouse who does not want to hold onto the home could agree to a buyout by the other spouse. For optimum success with this option, a property appraisal becomes necessary. The spouse who buys out the other needs to make sure she or he has the finances necessary for this option, including legal fees.
Maintaining a house and paying all the associated bills can become a challenge with one income rather than two, notes WIFE.org. A divorcing spouse who fights tooth and nail for the marital home could later come to realize the property sucks her or his wallet dry. Buying a smaller property or renting for a while may make more financial sense.
Signing over the house
There are instances in which the spouse who gives up the house does not want any financial gain from a buyout or selling the house. In such instances, it makes sense for one spouse to sign over her or his half of property ownership.
Another reason to consider giving up homeownership is the tax consequences. Selling a home alone involves absorbing sale and capital gains liability.