For many, the family home is not just a significant financial asset but also a place of sentimental value. Deciding whether to keep the home after a divorce involves several considerations, from financial impacts to emotional ties. What questions should people ask when making decisions about their house?
Can you afford to keep your home?
First and foremost, consider whether you can afford to keep the home on a single income. This includes not only the mortgage payments but also hundreds of dollars each month in maintenance costs, utilities, property taxes, insurance and other expenses. If you have not yet paid off your house, you should also consider whether you can refinance your mortgage and if refinancing would lead to a higher interest rate. It is important to have a realistic understanding of your financial situation post-divorce. Consulting with a financial advisor could provide clarity.
How attached are you to your home?
For many, the family home represents stability, especially if children are involved. Keeping the home may help provide a sense of continuity and security for them during a time of significant change. However, it is also important to consider whether staying in the home might prolong emotional pain associated with the divorce.
What are your financial goals?
Think about what you want for your finances. Keeping the house might mean sacrificing other investments or savings plans. Consider how this asset fits into your overall financial strategy and retirement planning. For example, if you want to focus on your retirement savings, keeping your home may become an obstacle to that goal.
Can you keep up with maintenance after your divorce?
Consider whether you can handle the maintenance the property requires, both physically and financially. A large home might be too much for one person to manage, or the ongoing upkeep might be financially unsustainable.
Can you temporarily co-own your home with your ex?
In some cases, ex-spouses might agree to co-own the home for a period, perhaps until children are out of school or until the market allows for a better sale price. This requires a good deal of cooperation and clear legal agreements to define your responsibilities for payments, maintenance and other details. You should also plan now for the eventual sale of your co-owned property.
Deciding whether to keep your home after your divorce is a complex. It is important to take your time, gather all the necessary information, and make a decision that is right for your personal circumstances and future goals.
