Buyout vs. Selling Your Home in a Fort Lauderdale Divorce: Which Option Is Right for You?
The marital home is often the most valuable asset in a Fort Lauderdale divorce. Whether you want to stay, need to sell, or aren’t sure what makes financial sense, you should know your options before you negotiate.
Our Fort Lauderdale divorce lawyer has years of experience helping Broward County clients in these cases. Find out what to consider when deciding to sell your home or buy out your spouse and how to determine which is the right option for you.
Fort Lauderdale Divorce Property Division: Determining What to Do With the Marital Home
Under Florida Statute Section 61.075, everything acquired, earned, or accumulated during your marriage gets divided on an equitable basis in a Fort Lauderdale divorce. This includes the marital home.
Provided there’s equity, each spouse is entitled to a fair share. In a buyout, one keeps the home and compensates the other, either through a cash payment or by trading other marital assets. Selling means both spouses agree to list the home, divide the proceeds (after paying off the mortgage), and move forward separately. Key factors to consider when determining which makes more sense include:
- Whether you can realistically qualify for a refinance.
- The true cost of keeping the home, including the mortgage, property taxes, insurance, HOA fees, and maintenance.
- Whether you have children and if it’s in their best interests to remain in the home.
- How quickly you need financial closure, since a buyout is generally faster than selling.
- Whether the home has significant pre-marital equity or was purchased with non-marital funds, which impacts how the equity split is calculated.
Consider the tax implications of each choice as well. Married couples selling jointly can exclude up to $500,000 in capital gains, or $250,000 per person once the divorce is final.
Which is Right for You: Selling Your Home Versus Buying Out Your Spouse
Decisions made in a Fort Lauderdale divorce can impact you long after you get a final order. This is particularly true with a marital home. Before making such a major decision, take these steps:
- Get a current market appraisal from a licensed Florida appraiser.
- Run the actual monthly cost of homeownership on your projected post-divorce income.
- Talk to a tax professional together about the capital gains implications.
- If you have children, consider whether a deferred sale arrangement, where one spouse stays in the home temporarily, makes sense.
- Make sure any buyout agreement includes a firm refinancing deadline in the final divorce decree to avoid ongoing financial and credit risk.
Getting clear on the numbers before you negotiate puts you in a far stronger position at the table.
Consult Our Experienced Fort Lauderdale Divorce Lawyer Today
In a Fort Lauderdale divorce, decisions made regarding the marital home and other valuable assets can impact you long afterward. To discuss your options, contact Vanessa L. Prieto Law Offices.
With years of experience representing Broward County clients, our Fort Lauderdale divorce lawyer provides the trusted legal guidance you need to make the right choice. Request a consultation today.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
