Reasons NOT to keep the house after divorce

There are certainly some valid reasons to keep your home if you get divorced. Maybe it is a significant financial investment, and you know you can make a lot of money selling it in the future. Maybe you just want to have a stable living situation for yourself and your children, and you feel like keeping the home is the best way to do that.

You could buy out your spouse’s share or trade other marital assets.  Another option is that you and your spouse continue to own it together. But before you decide to keep the house, consider some reasons why you may not want to keep it.

A single income

First and foremost, many people who are going through a divorce are going from a dual income to a single income. Your living situation may have been affordable when you and your spouse were married, but there is no guarantee that it will be affordable on your post-divorce budget. Remember to consider factors that go beyond the mortgage payment, such as the escrow for property taxes and home insurance, along with the cost of maintenance, upkeep, utilities and much more.

Refinancing your mortgage

You may find that your mortgage is not even affordable on a single income. If you and your ex applied for the mortgage together, then you may have to refinance and apply for it on your own. Depending on your income level, this could be easy, or it could be a major hurdle where you will not qualify for a mortgage on your own house.

Financial considerations

As you can see, there are many financial details to consider when going through a divorce and addressing property division. Be sure you know what legal steps to take.