If you and your soon-to-be ex-spouse want to continue co-owning the family home, perhaps because you want to avoid potential financial losses or you have children who have a strong emotional connection, you need to be well informed. Co-owning the home as divorced spouses can be different from when you were living under the same roof.
Here is what to know about this option:
You need a legal agreement
If you and/or your spouse bought the family home during the marriage, it will be considered marital property, which means you have equal ownership rights. While this right was protected during your marriage, you need to draft a legal agreement to co-own the home after dissolving the marriage.
The contract should state:
- How ownership is divided
- How you will each use the house (how many days per week each parent will live with the kids or whether or not you should rent it out)
- How to handle earnings from renting out the home
- The financial responsibilities of each party
- How to fund repairs and maintenance
- How you will make decisions
- Methods of dispute resolution
- The process of selling if you ever decide to do so
- Buyout options
- What happens to one’s ownership rights when they die
Every clause of the agreement should be clear to avoid misunderstandings.
You need to effectively communicate with each other
Effective communication between ex-spouses is integral to successfully co-owning a family home. They need to communicate about mortgage payments, property taxes, repairs, renovations and so forth. Ex-spouses who don’t want to maintain communication or can’t be on the same page may have difficulties owning a home together.
Co-ownership is one of the options soon-to-be ex-spouses have regarding the family home. If you believe this option is suitable for you, legal guidance can help protect your rights to the house.