You have fond memories of your marital home, and you do not want to give it up in your divorce settlement. Because you must rely on your income alone, you must think about whether you have the financial resources to afford to stay in your home.
Kiplinger explores various financial facets of owning a marital house after divorce. Learn how to set yourself up for success in your post-divorce life.
Getting a fair price
Before buying your home or applying for a mortgage by yourself, it makes sense to determine your home’s current worth. Your current spouse may want this information, anyway, to minimize arguments and disagreements. Michigan’s current real estate market could favor you right now.
Affording monthly expenses
Once you calculate your home’s current value, look at your income as a single person. No longer may you depend on using two incomes to cover homeownership costs. Consider how much the divorce costs, how much you expect to spend to establish your post-divorce life, if you must financially support shared children and whether you receive or pay spousal support.
Investing in the house
Does it make good financial sense for you to invest in real estate right now? You may have outstanding debts to pay, including debts shared with your soon-to-be former partner. Perhaps you want to put money into an emergency savings account first. Have an honest conversation with yourself about your current and future financial capabilities. It could make more sense to either rent or buy a smaller property right now.
Staying in your marital home after divorce could become a great decision, or it could hurt your financial health. With time and careful consideration, you boost your chances of choosing the right option.