They say that home is where the heart is, but it is also where you hold most of your personal wealth if you are like most Americans. The longer you have lived in your home, the more you have paid toward a mortgage and the greater the overall amount of equity you have in the property.
For divorcing couples, their home can quickly become a major issue. Sometimes, spouses battle over who will keep it. However, is keeping the home really the best outcome for you?
Affording the house on your own could be hard
Home prices have increased faster than the average income of individuals in many areas, especially in the last few years. Thankfully, interest rates for mortgages are currently low, which could offset the increase in home prices.
Even if you receive child support or spousal support, your income alone may not be enough to let you refinance the mortgage on your own especially when you consider that you will likely have to cash out equity for the benefit of your ex.
Why do you want to retain the home?
To figure out the best way to address your home in a divorce, you should first think about your motivation for wanting to keep the house. Is it financial? Do you have an emotional attachment to the property? Do you want your kids to stay in the home to make the divorce less traumatic for them?
Exploring both your current financial circumstances and the reason you feel strongly about your home can help you set realistic goals as you approach your upcoming divorce.
