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Keep or Sell Your Home During Divorce?

Posted Wednesday, August 28, 2013

The decision to keep or sell your home when going through divorce can be an ongoing source of emotional conflict and negotiation between the parties. The divorce itself causes disruption and most people want to stay in the home to feel secure especially when your children's lives need to be kept as normal as possible during this transition. 

Reaching the decision together about whether one party should keep the home or sell it, is a huge decision! There are a lot of factors to consider for both of you who are about to take on separate lives.  In many instances, there is no choice, sometimes it’s the only solution for both of you.

What housing options are available your area? Compare the cost of keeping your house and making mortgage payments with rental homes in the area. Consider whether you can afford to buy the other party out and stay in the home or whether you can afford to purchase another home after you have sold or gotten out of your existing mortgage.

What is the status of the real estate market in your area? Do you know what your home is worth? Are you underwater when it comes to equity or can you afford to pay off all of the mortgage on your home plus cover the costs of selling it and moving? After finding out how much you still owe on your home loans, consider consulting with a real estate professional to find out what similar homes are selling for near your home. 

Consider whether you can really afford the house on your own after your divorce is final. This is a painful decision and no matter how much you want to stay, you must consider your financial situation. You will also need to find out whether you’ll be able to qualify to refinance into your name. Also be sure to consider rising taxes, utilities, repairs, maintenance and landscaping as these items can chip away at the budget as well. 

Would you be in a better position to take assets in exchange for your share of the home? If you decide to stay in the home and then sell at a later time you could end up hefty tax liability depending on how much the home sells for. You should meet with a tax professional to assist you in weighing all of your options. 

You should consider the benefits of making a clean break from your spouse and sell my home fast. As difficult as this sounds, sell my home fast alleviates what could be a lot of stress and financial difficulty in the future.  Neither party will have to be worried about whether they can qualify to take over the mortgage alone, or whether you can afford everything home ownership entails on one income. You can both use the opportunity to start a fresh new life with new financial goals.