2 considerations when keeping the house after divorce

On Behalf of | Jul 22, 2024 | Divorce |

In a lot of divorce cases, the couple just decides to sell their house. It may be the best way to divide their assets. Maybe they can sell it for $50,000 more than they owe on the mortgage, so they each take $25,000 and move on. It keeps things simple.

But there are other cases in which one person will decide that they want to keep the house. They may be willing to give up other assets, such as an investment portfolio or a retirement fund, in order to do so. If you’re in this position and considering keeping the home, here are two important things to keep in mind.

1. You may need to refinance your mortgage

First of all, it’s often necessary to refinance the mortgage. If you don’t, both you and your ex would still be liable for mortgage payments in the future. Your ex will probably want you to refinance to take their name off of the paperwork, making you the sole owner. 

But if you applied for your initial mortgage with two incomes, and you will now be applying for a mortgage with just one income, it is sometimes more difficult to get the loan that you need. Be sure to look into your financing eligibility when deciding how you want to proceed.

2. You should add up all of the costs

Additionally, people are sometimes surprised by the cost of owning a home on their own. It’s more than just the mortgage. You’ll also have to pay the full bills for utilities, maintenance, upkeep, property taxes, property insurance and much more. If you have a large family home, it may not be financially feasible to keep that property after divorce, rather than downsizing.

As you can see, dividing assets can get a bit complicated. Be sure you know what legal steps to take.