Aside from child custody issues, one of the most commonly asked questions by those facing a Minnesota divorce is what will happen to the the house in a divorce?

Those couples facing a Minnesota divorce often want to know whether they should fight to keep the house, hand it over to their ex or simply sell it and divide the profits (or sadly, losses). Though it’s seldom what people want to hear, there is no universal right answer. Instead, a range of factors should be considered when deciding what to do about your home. Some of these factors are objective and financial while others are emotional and can depend greatly on the specific background of your case.

Questions to consider when deciding about the house

If you’re facing the difficult task of deciding what to do about your home it is important to spend some time thinking about the reality of keeping the house. Ask yourself whether the house will truly be manageable to you after the divorce. Is it too big? Can you afford to maintain it on your own or was your ex largely responsible for that? Can you afford to make repairs? How about the value of the house? Is it in a good area that will likely see appreciation? Can you afford the monthly mortgage payments? What about housing association fees?

It’s important to try and keep emotion out of this stage of the decision-making process. Though everyone likes continuity, especially when children are involved, if the facts are clear that staying in the house does not make financial sense then it’s best for you and your family to leave and create new memories in a place you can afford.

What about refinancing?

Even if you determine you want the house the fact is you may not be able to keep it. The truth is that it is not always easy to refinance a house in one party’s name, especially in the current, stricter economic climate. In most cases the party that wants to keep the house will be forced to refinance the mortgage in his or her own name. The reason is that if you divorce and your former spouse’s name remains on the mortgage, he or she will still be liable in the event that you fail to make your payments. Most Eagan, Minnesota family law attorneys insist that their client not be exposed to that kind of risk at which point refinancing becomes mandatory.

Does it make financial sense?

Assuming you would be able to refinance the house, does it make sense to do so? Historically, people have assumed that house value would always go up. Recently that has been proven false as years of slumping demand has led to millions of families underwater on their mortgages. Additionally, if the house is your only substantial asset you have to find a way to compensate your spouse for his or her half of the value of the home. Are there other assets that you have that can be used to offset the value of the house? Even if you have retirement accounts or stocks that could be used to balance the equation, you have to ask whether it is wise to hand over potentially valuable retirement assets to be stuck with a house that may not be climbing in value.

How to value the marital home?

Even if you and your ex come to an agreement about what to do with the home, there’s the additional matter of deciding its value. Though it would seem like the question is a simple one, the fact is couples frequently fight over precisely how much the home is worth. The following is an overview of three ways to value a home:

1. Engage in some online research

The cheapest and often easiest way to try and come up with an estimate is to simply search local MLS listings for similar homes in your part of town. Compare features and square footage to arrive at a guess of what your home might sell for. This simple approach can work in cases where the parties can still get along or where the house is not a central focus of dispute. In more contentious cases this guesstimate will likely not suffice.

2. Do a comparative market analysis

This is typically done by approaching a realtor and asking them to run a quick search of similar homes to arrive at a fast estimate of your home’s value. Realtors often do CMAs for little or no money. While this can be a fast and cheap option, it is important to realize that a CMA is much less accurate than conducting a full-scale appraisal.

3. Go for a full appraisal

Depending on your location, an appraisal can run anywhere from a few hundred to a few thousand dollars. It can be a stiff price to pay, but a necessary one in some cases where the value of the house is of special importance. Though it can be pricey, it’s the best way to reach a solid estimate of your home’s value, a number that will figure in prominently to the remainder of the equitable division process.

An experienced Minnesota family law attorney can help walk you through the difficult process of divorce, including offering advice on confusing financial issues and helping negotiate a child custody arrangement. For more information on divorce in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 360-4721.

Source: “Keeping The House After Divorce,” by Kathleen Connell, published at HuffingtonPost.com.

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