When you divide property during a Massachusetts divorce, you may want to pay particular attention to your home’s equity. For many former couples, the equity they have in their once-shared home represents their most valuable asset. When it comes to your own home equity and divorce, you have several different options with regard to how to handle it.
According to NerdWallet, most people facing the same circumstances as you choose to handle the equity they have in their homes in one of the following ways.
By listing the property
If making a clean break from your ex is a priority, you may want to put the home on the market and split the profits you make down the middle. Beforehand, you need to figure out how much equity you have. This may require you, your ex, or both of you to secure appraisals.
By refinancing the mortgage
Maybe you or your ex want to keep the home you once shared together. If you wish to do this, you need to figure out if you are going to be able to qualify for a new mortgage without your former partner’s income. If so, you should be able to refinance your mortgage and exclude your ex’s name.
Whether one of these options or another option entirely is going to meet your needs most favorably depends on certain factors. These factors might include the strength of your city’s housing market and whether there is any disagreement between you and your ex about what to do with the property.