As you head toward a divorce, you may decide that your main goal is to continue living in your home. Perhaps the expense of the housing market just makes you feel like you won’t have another chance to own such a nice property. Maybe you’re just comfortable in the house, or you want to provide stability for the children.
You may have options to get the marital home during property division, especially if you give up other assets to do so. You may be able to trade these assets to your ex, such as allowing them to have your shared bank account, investment portfolio or retirement savings. But there are still two important things to think about as you make this decision.
1. Refinancing the mortgage
First and foremost, remember that your mortgage lender doesn’t care if you get divorced. As long as you’re both on the mortgage documents, you’re both responsible for future payments. For this reason, keeping the house probably means that you need to refinance and get a new mortgage so that it will just be in your name.
2. Adding up the costs
The next thing to think about is the cost of owning a house on your own. This does start with making those monthly mortgage payments, but that’s not the entire expense. You’ll also need to pay for home insurance, property taxes, and utilities like gas, water and electricity. You’ll have to pay for all of the maintenance and upkeep on your own. It’s often wise just to sit down and make a budget based on your income after the divorce to see how affordable this really is.
Dividing marital property can often be a source of contention for couples who are getting divorced, so it may help to work with an experienced law firm at this time.
