Indiana Law Blog
The family home is often one of the most significant and emotionally charged assets to divide in a divorce. Deciding what to do with it involves both practical and financial considerations. In Indiana, there are several options for handling the family home during a divorce.
Option 1: One Spouse Buys Out the Other
A common solution is for one spouse to keep the home by “buying out” the other spouse’s equity. This requires:
- Determining the home’s current market value.
- Calculating each spouse’s share of equity.
- Securing financing to pay the other spouse, if necessary.
This option can allow children to remain in the family home and provide stability during a difficult time.
Option 2: Sell the Home and Split the Proceeds
Selling the home is often the simplest option, particularly when neither spouse can afford to maintain it alone. After paying off any remaining mortgage and costs of sale, the net proceeds are divided according to the divorce settlement.
This approach provides both parties with liquidity and a clean break, allowing each to start fresh.
Option 3: Deferred Sale or Co-Ownership
In some cases, spouses agree to postpone the sale of the home for a certain period (for example, until children graduate high school). This arrangement usually involves detailed agreements about who pays the mortgage, maintenance, and other costs in the meantime.
Co-ownership arrangements can be complex and require clear legal agreements to prevent future conflicts.
Factors to Consider
When deciding what to do with the family home, consider:
- Affordability of ongoing mortgage payments and upkeep
- Emotional attachment and stability for children
- Tax consequences of selling versus keeping
- Each spouse’s long-term financial goals
Final Thoughts
The family home can carry both sentimental and financial weight during a divorce. Exploring all options and understanding the implications is critical for making the best decision for your future.
If you’re facing a divorce and need help deciding what to do with your home, the experienced attorneys at Harshman Ponist Smith & Rayl, LLC can help you evaluate your options and protect your interests. Contact us today to schedule a consultation.