If you are getting divorced, you may anticipate that one of the biggest conflicts will be what to do with your house. Perhaps your goal is to keep the home because you see it as a way to create more stability after your marriage ends. The house is a marital asset, but you want to keep it during property division.
Depending on your situation, keeping the house may work. But it is important to consider both sides of the issue. Here are three reasons you may not want to keep it.
1. It may not fit your lifestyle
First, the house you owned as a couple may no longer make sense for you as a single person. Perhaps you and your spouse bought a four-bedroom home, anticipating starting a family, but you don’t need such a big house on your own.
2. You may need to refinance your mortgage
Another factor to consider is that you’ll likely need to refinance your mortgage if you want to keep the house unless it’s already paid off. Refinancing removes your ex from financial liability for future mortgage payments. However, qualifying for the same mortgage on just one income can be difficult or even impossible.
3. Everything else gets more expensive
In addition to the mortgage payments, remember that owning a home on your own makes it feel much more expensive. You alone have to cover the costs of utilities, maintenance, property taxes, home insurance and more. If your budget is going to change significantly after the divorce, make sure the home truly fits within that new budget.
Dividing property during divorce can be complex, and your home is just one aspect of that process. Take the time to carefully consider your legal options.