If you own a house, then one of two scenarios is most likely. Either you sell it and put the proceeds into the property division pot. Or one of you keeps it and the value is computed into the overall division equation.
Yet in some cases, neither of those is the best option.
Housing markets fluctuate
Let’s say you bought the house together for around $500,000. Yet when you had it valued recently, the realtor estimated that all you could get was $400,000. Perhaps you bought at the peak of a bubble or maybe something happened in your area that has caused prices to fall.
If you can afford to hang onto it, then doing so might be the better option, in some cases at least. Real estate prices can rise and fall over time and waiting until the price is at least closer to what you paid for it could mean a greater share of money for both of you when you do eventually sell.
Alternatively, the current value may be above what you paid for it. So if you sold it would equate to a tidy profit. Yet, a new development in your local area, such as if a big tech company decided to base itself nearby, could lead prices to rocket. If you sold now you might forever feel you lost out on the opportunity to reap a big dividend. Waiting a few months or even years could prove a wise long-term move.
Not everyone has the financial capacity to do this. But if you do, then it is wise to consider it as one of your options when splitting your assets in your divorce. Just make sure you put appropriate paperwork in place to document your relationship as joint property owners who are no longer married.