A home that was purchased during a marriage is typically considered a marital asset. In Utah, this means that the equity in the home that was gained during the marriage is divided equitably upon divorce. Depending on the situation, this equity can be divvied out in numerous ways.
Like much of family law, the ultimate answer to whether you should sell or refinance a home when ending a marriage is dependent on any number of factors because it is often unique to your situation. Thus, the primary factor to consider is what will put you on the best path.
Here are some general considerations to help you determine whether a refinance or sale is best for you:
- How much equity is in the home?
- Can you afford the house by yourself?
- Could you afford it if you had to cash out your spouse’s equity?
- Do you need the space?
- If you have children, what is the custody arrangement?
- Will a move change the children’s schooling or potentially alter parenting time?
- Will a move displace the children in an already complicated and confusing time?
- What do the utility costs look like? Can you afford them?
- If alimony and/or child support weren’t being paid, could you maintain the cost of the home?
- Would you qualify for a refinance?
- Are the refinance rates low enough to justify a refinance at the time?
- What does the housing market look like?
- Will repairs need to be made on the home before a sale? How would those repairs be paid?
- Will either a sale or a refinance expedite the parting of ways?
These are often complicated questions with complicated answers. At Pearson Butler, our legal team is experienced in navigating these questions to make sure that you are placed in a position to successfully move forward, regardless of whether that means refinancing or selling a marital home.
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