"I'm seriously considering leaving my marriage. One logistical piece that I keep getting stuck on is what we do with our house. We purchased our house in 2021 at an extremely good mortgage rate (2.9 percent). Unfortunately, neither of us make enough money to pay the mortgage on our individual salaries, but it feels insane to give up such a strong investment. The house has increased in value nearly 20 percent in just those few years."
"Right now, I'm thinking the best option would be for us to keep joint ownership of the house, rent it, and split the rent income to cover the mortgage. I don't anticipate that ours would be a particularly acrimonious divorce (no cheating or domestic abuse, just a marriage that isn't working), so maintaining co-ownership shouldn't be prohibitive. Then if further down the line one of us wanted to sell, the other could decide to either buy the other out or split the proceeds."
A married couple purchased a house in 2021 with a 2.9% mortgage rate and the property has appreciated nearly 20%. Neither spouse can cover the mortgage on their individual incomes, creating a difficult financial choice amid an impending separation. One feasible option is to keep joint ownership, rent the property, and split rental income to cover the mortgage, which depends on clear communication, aligned rules, and willingness to co-manage a rental. An alternative is for one spouse to buy out the other using premarital assets, but that typically requires refinancing and losing the favorable mortgage rate. Emotional uncertainty complicates decision-making.
Read at Slate Magazine
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