Consider Whether You Really Want to Keep the House in Your Divorce
When you’re in the process of getting a divorce, your first instinct may be to try and fight to hold onto your house. You may be reluctant to move your children into a new house, amidst all the other changes occurring in their lives; also, you may wish to remain in the home to save yourself the hassle of moving. However, while the decision to keep or part with your house is necessarily an emotional one, you may benefit from taking an objective look at whether the decision to keep your home is truly in your best interests.
What is the market value of your home?
If you have poured hours of time and effort into doing repairs on your home, or spent years with your family in your house, it may be difficult for you to perceive the true value of your home. In negotiations over a division of property, you may not be considering large-scale repairs that would diminish the value for a third-party buyer. Additionally, it may not be wise to fail to sell during a seller’s market. After a divorce, your financial situation may not be as robust as it once was, and you may end up regretting the decision to pass up an opportunity to invest in your future by selling at peak value.
Will you be able to refinance?
Divorce is an expensive process. Your savings account may be depleted, and you may have outstanding expenses. If you have been a stay-at-home parent during your marriage, you may not return to the workforce at the same wage rate that you used to make. Should you keep the house that you bought with a spouse, you will need to obtain a refinanced mortgage that is in your name alone. However, applying for a loan when your creditworthiness is at a low could lead to an unfavorable interest rate, or an inability to qualify for a loan altogether. It might not be a good idea to tie yourself to a high rate in order to hold onto your home.
Will a mortgage payment fit into your post-divorce budget?
Without the ability to split your expenses with a spouse, and with additional expenses from child or spousal support or re-entry into the workforce after an extended absence, you may be operating on a more restricted budget than the one to which you were previously accustomed. A mortgage could put a great deal of strain on your budget, and even ultimately prove detrimental to your children’s happiness by forcing you to allocate too great a share of your income toward housing.
For assistance with any Kentucky family law proceeding, including your divorce, custody dispute, or division of property, contact the compassionate Louisville family law attorneys at Gwin, Steinmetz & Baird PLLC for a consultation on your case, at 502-618-5700.