Your family home is likely one of the most valuable assets you’ll need to address in your divorce. Many divorcing couples who own their home jointly have no realistic option financially other than to sell their home and divide the proceeds.
If, however, you believe you can afford to buy out your soon-to-be ex’s share of the home (or give them something of equivalent value) and continue to live there, it’s critical to determine whether owning the home yourself is going to be feasible moving forward.
Getting an accurate valuation
First, you’ll need to know the home’s current market value. This should be determined by a professional whose assessment you can both accept. If home values are in flux in your area, this can make getting an accurate valuation you can both agree on challenging.
If you have a mortgage, you’ll likely need to refinance that solely in your name. You’ll want to be sure you can qualify on your own.
Ensuring that you can afford to maintain it
Even if you can afford to keep the home, it’s crucial to make sure you can also afford to maintain it. That means factoring in expenses like insurance, property taxes and homeowners’ association (HOA) dues in addition to monthly utility and other costs.
If there are things that your spouse took care of, you may have to hire professionals to do them. This could be anything from lawn and pool maintenance to cleaning and more. It’s important to factor in those costs.
Finally, you’ll want to look at how keeping the home fits into your larger property division settlement. Are you giving your spouse other assets in return for the home that you’ll need to spend money to replace, for example, or giving up a large share of your retirement or investment assets?
There are many good reasons to want to keep your family home when your marriage ends. Maybe you put a lot of work into it over the years. Perhaps you’ve become an integral part of the community. Maybe the home simply has a lot of sentimental value.
When making this decision, it’s critical to have sound legal guidance. It’s also wise to consult with financial, tax and real estate professionals. This can help you make the best decision for your future uniquely.
