Divorce can be so rough that it makes you hold on to things that are better off gone. A home you’ve filled with memories and love can be one of the most challenging possessions to let go of. However, keeping the home is not always the most practical thing when considering the big picture.
You may not be able to afford it
Divorce can impact a person’s financial standing in many ways. Many divorcees experience a drop in their standard of living after divorce. Even if your ex-spouse says you can keep the marital home, you may not afford to buy them out or maintain it.
A single source of income may not be enough to cover your rent or mortgage and taxes. Additionally, there are upkeep costs and utility bills to think about. Homes need regular maintenance; otherwise, they could develop more expensive problems later.
On top of these costs, you’ll also have to shoulder your personal expenses, such as groceries, gas and health care. Living alone is significantly more costly versus with someone else.
Consider calculating your future monthly expenses to see if you can keep up with payments after divorce.
You can split the profit and costs of selling instead
Keeping the home and then deciding to sell it later can cost you. You’d have to buy out your ex and shoulder the costs associated with a house sale.
Instead, selling the home together can save you money. You can split the expenses of any repairs or upgrades needed to make the home more marketable, as well as the administrative costs associated with the sale itself, such as real estate agent fees and closing costs.
It could be a viable option if neither party want to stay in the house or cannot finance the home on their own.
Of course, these decisions can be made more complex or easy if you have young children or a fully paid mortgage. Put your emotions aside and weigh the pros and cons of keeping the home. Discussing your situation with a financial specialist or an attorney could also give you some clarity.
