The time has come. You have made your decision. Divorce. Not exactly what you had planned all those years ago but here you are. Now there are some tough choices that have to be made and there may be assets to divide and children to consider.
For many couples, the biggest asset they own is their family home. In some cases, it needs to be sold to finalize the divorce and settlement agreement. If you are fortunate to be amicable with your spouse the process may be easier however disagreements about the disposition of the house can drag the case out and increase legal fees while you negotiate.
Depending upon what guidelines your state follows it can be subject to either Equitable distribution or Community property law unless you have a prenuptial agreement. This will also determine who will be responsible for the mortgage payments and the expenses of running the house until it is sold. and how you divide up the proceeds once it sells
Is one of you going to keep the house or are you going to sell it? Who will live in it and who has to move out? Are you both on the mortgage and how will that affect your ability to buy another house? If you have children at home, you have to consider their schools and whether it is the right thing to move them in the midst of all the changes ahead. You have to weigh all the options to make a well-informed decision.
Selling your house with a Leaseback may be one way to cash out the equity in your house without disrupting your home.
A Leaseback works generally works like this:
An Investor buys your house for a mutually agreed upon price. As part of the contract, the monthly rent and lease terms are defined, and you rent it back beginning the same day you close. At closing, you receive the cash proceeds of the sale after any existing mortgages and closing costs are paid off.
The Investor/Buyer of your house takes on the responsibility of the maintenance and repairs while you remain in your home without the headaches and costs of ownership. This way you can keep continuity in your life while you finalize your marital status.
You should consult your legal professional to determine if a sale-leaseback is right for you.