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Keeping family home during divorce requires certain steps

In the family home, people create memories and experience some of life's most cherished moments. It is no wonder that the family home is often an object of contention during the process of divorce in New Jersey. One partner might decide to keep the house, in which case there are a few important financial considerations that need to be made.

If one person decides to keep the marital home and there is still a mortgage on it, the mortgage will have to be refinanced in that person's name. In addition, this person might have to buy out his or her future ex according to the equity that is in the home. This buyout amount is negotiable. In negotiating this amount, it is important to consider the possible appreciation of the house as well as any fees or taxes that might result from the sale of the home in the future.

In addition, prior to coming to an agreement on the buyout amount, it is necessary to get the home appraised. It is wise to get two appraisals at least. If the two are vastly different, the couple can consider getting a third one, or they could agree to a figure that is in the middle of the two appraisal numbers.

The process of divorce in New Jersey can understandably be stressful both financially and emotionally. However, if two individuals can see eye to eye, they may be able to reach a settlement through negotiation or mediation. If not, a judge will decide for them how their assets are to be split, and the outcome may not be in the interest of one or both parties.

Source: palmbeachpost.com, "Deciding What to Do With the Family Home After Divorce", Mary Ballin, Oct. 31, 2016

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