What’s a Buy-out?
One of the most problematic assets to deal with is the family home. It’s an issue as it’s immovable and has a considerable invested value associated with it. No matter how you slice it, a property is a nightmare during a challenging process.
Many will let emotion thrive and either ask for the entire property or give it to the other party. To complicate things, you may have children involved. These can provide the person with guardianship a powerful position if assets are contested.
What can you do? First, you may decide to sell the property, yet what happens if you like or need the home for the children? Divorce can be just as painful and disruptive for a child as the adults. The last thing they need is to be moved from a place they could have lived the entirety of their life.
A second option may be to agree on a co-ownership if possible, given the divorce scenario. Finally, the third option is a buy-out where one party is given money based on a perceived share value.
Dividing Up the Property
After discussing these options, you may decide on a buy-out.
You must determine a market evaluation on the property’s sale value following a mutual agreement for a buy-out. You will also need to weigh up the share value of the property. It could be a straight split based on income payments or more subtle details that need to be agreed upon.
For example, one party may stay at home to look after the children while others work. This situation may also change over the relationship’s time, which will impact the buy-out price.
You’ll need to consider the equity on the property and any debt associated with it. Equity is essentially the net value after debt which could mean that a property has negative equity if a new buy and all the interest hasn’t been paid yet—something to consider when considering the buy-out.
Selling the Family Homestead
So how do you pay for the buy-out? You may decide to pay a lump sum to your ex outright. You may also choose to do this by refinancing the home and taking out a second mortgage. You should note that when you do this, the first contract is effectively appended to a new contract that becomes your mortgage. Be careful of rate and term changes during this process.
To make life easier, you may substitute the value with other assets such as cars. Both parties, however, will need to agree upon the value of assets being used to achieve this.
Another avenue you can go down is taking out a secured loan on a different asset.
Children of Divorce
Children in terms of a divorce refer to minors aged 18 and under. They are prioritized during a divorce by legal professionals. This action can help the children have a stable environment with income that supports their development. They are also used by parties that haven’t agreed on a settlement to get the best deal. People may go to court to gain guardianship over children to help them keep more assets.
If there are disagreements in the money, a party receiving this entire process turns into a mud-slinging match. Avoid this by selling the property, taking it off the table, and enabling all parties to have a new start. They may appreciate this more than lengthy, drawn-out disruptions if children are involved. But, to make a divorce as easy as possible for all parties, the sale must occur fast. Drawing it out to get a fair market price can be a big problem.
If you need help selling your home to help divide assets quickly and effectively, WeBuyAnyHomeExperts is the largest home buyer in the UK. However, we do not take advantage of the situation, and you will be given fair market value for your property within seven days of initial contact. We can even give you a verified evaluation for free within 24 hours.
We profit from the property’s sale later, not from your bottom line. This ensures we don’t take advantage of your misfortune while providing a concrete way of getting sellers interested in selling to us.
We use the local street house property sale values to base the offer. You’ll have an estimated value over the phone within minutes. If happy to proceed, we will briefly visit the site to verify the value before proceeding. We handle everything else for FREE – you pay us nothing!
You don’t have to pay surveyors, estate agents, solicitors, or other professionals. This process helps ensure you’re not haemorrhaging money and getting the most money you can do during the divorce settlement process. Furthermore, you’re not waiting months to end ties with your ex or waiting for equity to purchase a new property and begin a new life.