Some people just want to sell their house during a divorce so that they can move on with their lives. But other people want to keep it, perhaps to create stability for their children or just because they know how valuable owning your home is in today’s real estate market.
It is sometimes possible to keep the house if your ex is willing to give up their ownership share, perhaps in exchange for other marital assets. But there are a few things to consider when determining if this is the right decision for you.
Will the home be affordable?
For instance, you need to sit down and look at your post-divorce budget to determine the affordability of the house. Even if it was affordable during your marriage, you may have had two incomes, which reduces the relative cost.
After a divorce, you will need to cover all of the costs on one income. This includes maintenance and upkeep, property insurance, property taxes, utilities, mortgage payments and everything else. Just make sure that this will all fit into your budget so that you do not keep the house and then find out in the first few months that it is a significant financial burden.
Refinancing your mortgage
If you and your spouse own the home outright, then you can just take over as the sole owner. But if you have a mortgage, then you may need to refinance it into your own name.
This is sometimes problematic for those who will now just have one income to use when applying for the mortgage. But it is usually necessary because your ex could otherwise be liable for future mortgage payments, something they are unlikely to agree to.
Addressing property division
Determining what to do with the house is just one step to take during property division. As you go through this process, be sure to consider your rights and legal options carefully.