Your home is more than a house. It is a place full of memories – both good and bad. You may be looking back on holidays, family dinners, or even scribbles your child drew on the wall or a growth chart on the closet door. However, you may also have memories of fights with your spouse or of evenings spent wondering whether divorce is the right move. On the one hand, keeping your home can give your kids stability after the divorce. It may be the only home they have ever known. On the other hand, a fresh start might be best. If you’re not sure whether to keep the house after divorce, consider the factors below.
The emotional implications of keeping your home are important, but there are also financial considerations. You’ll need to know the value of your home and any hidden costs before decide to keep or sell the house. Here are some things to consider:
The Value of Your Home
It is often beneficial to get a certified appraisal. How much equity do you have in your home? Is there money owed on the house? Is your house worth less than the amount owed on it? If this is the case, it may be financially beneficial for one of you to keep the home until the housing market improves.
The Future of the Home After Divorce
It’s important to know how much each spouse’s share of the home equity is. If you want to keep the house after divorce, can you buy your spouse’s share or trade it for other assets? If you keep the home, the mortgage will need to be refinanced in your name. You’ll need to check whether you have sufficient credit and income to refinance the house on your own. Will there be mortgage payments? If there are payments, will you able to afford them on your post-divorce income. Will you have money left for insurance, repairs, maintenance, and improvements? You may need to draw up a post-divorce budget to see exactly how much money you will have. How much are the taxes on your home? Again, can you afford the taxes? If you can’t afford to keep the hose, do you know your other options? Could you move into a smaller house in the same neighborhood?
Deciding what to do about the house is just one of the many decisions involved in a divorce. The Pennsylvania and New Jersey divorce attorneys at Petrelli Previtera Schimmel can help you make the best decisions for you and your family. To schedule an appointment, call (215) 523-6900 or use our online scheduler.