If your spouse has asked for a divorce or you have decided that now is the time to end your marriage, one thing you should consider is what to do with your home. It may be that you would both like to keep the marital home, or you may be the only one who is interested in maintaining the property.
Whatever the circumstances may be, it’s not enough to just say that you want the home. You will also need to be sure that you have the financial support needed to maintain your home and the ability to buy out your spouse’s share (if necessary).
Knowing your home’s value matters during divorce
The first thing to do is to get to know your home’s value. If it is worth $300,000 and you’ve paid off $50,000 of that debt, you will need to assess how to address the $250,000 still owed as well as the $50,000 in equity. You should determine the value of the home with an appraisal, so you know exactly how much you could expect if you were to sell it.
Then, you will be able to determine what an equitable share of the property is. If you and your spouse have decided to split your assets 50-50, then you’ll know that around $150,000 of that property’s value would be yours and around $150,000 would be theirs. You may need to pay them that share to take full ownership or use other assets to offset keeping the home.
Don’t forget about your budget
Finally, don’t ignore your budget. Remember how much your home costs now, get a good look at the cost of utilities and don’t ignore potential tax implications. You should be sure that you can afford not only your monthly payments but also repairs and maintenance. If it seems too much to handle based on your current budget, then it may be more realistic to sell or rent out the home for liquid cash instead.
These are a few considerations to keep in mind as you decide if you want to keep your home after you divorce. It may be possible, but you do need to do a deep dive into your finances to be sure.