Many married couples choose to purchase real estate together. Sharing the investment and responsibilities involved in homeownership can make it a more achievable goal. Your home is an opportunity to invest some of your income and a place where you can raise your family.
However, co-ownership could create certain complications as well. If the two of you divorce, you will have to decide what happens to the home that you shared. Could you potentially keep your marital home when you divorce?
Sole ownership can be expensive
Your current income and financial circumstances will influence if keeping the house is possible for you. Unless you have other assets that your spouse can receive instead, you will probably have to share some of the equity in your home with them.
Many couples split the value of their home by refinancing and cashing out some of the equity. That will likely mean that the total balance due on your mortgage will go up and that the monthly payments will be higher than they are now.
You have to have a realistic idea of what your home is worth when compared to the remaining balance on your mortgage to determine how much you have to split it with your spouse and therefore how much you have to finance.
Money won’t be the only consideration
Homeownership and maintenance require a lot of investment. You will have to assume or outsource all of the responsibilities that your spouse previously performed around the house.
Thinking realistically about whether keeping the house is a smart goal can help you set priorities for the property division process in your upcoming divorce.