When you get divorced from your wife (as most of us seem to do these days) the difficult matter of splitting your finances comes into play. You have to divide everything you own equally, from your CD collection to your pets. You also have to split up the family home.

This leaves you with three options. Either you sell the home and split the money between you, which depending on your equity could leave you with a very small amount of cash to buy a new home, or one of you stays in the home and buys the other out. If your wife has the money to buy your share she could remain in the home, or you could keep it if you can buy her out.

It’s rare that any couple will have sufficient funds to buy their other half out, so more often than not one of you will have to remortgage the home. You might be able to do this with your current mortgage provider, or by searching through a series of personal loans providers.

It’s worth doing, particularly in today’s climate where house prices are very low. Selling your house will mean you lose money, buying your own house from your soon to be ex makes good financial sense.

Clive Bellmore