Can you afford the house after divorce?

For some people who are going through a divorce, the most difficult part is dividing assets such as cars, art and retirement accounts. When you have worked hard to build things together, letting go can be an emotional experience.

The family home is particularly difficult to discuss. Many couples fail to consider the long-term financial impact of keeping a house post-divorce. Therefore, it’s important to focus on issues such as property taxes, maintenance costs and the value of the home, to make an informed decision. Speaking with a family law attorney and a financial planner will also help you determine if you can afford the house after divorce.

Doing the math

Can you afford to keep the house? When weighing this option, you should account for the mortgage, real estate taxes, homeowners insurance and maintenance. Also think about how you will manage your mortgage. If you cannot remove your spouse from your existing loan you will have to refinance. You may also need to borrow more equity in order to buy out your spouse. Will you have enough income to afford a refinanced mortgage post-divorce?

If you decide to sell your house, the first step is to determine the value of the home. In order to get an accurate appraisal, this should be done after paying off the mortgage and taxes. Another thing to consider is the time it takes to sell a house. How are the real estate market conditions where you live? And what are your living options in the short and long term?

Next, you will have to pay your spouse their share of the present equity. If you and your spouse can’t agree on a buy-out amount, a court will decide according to the guidelines of equitable distribution determined by your state law. Determining an equitable distribution can be complicated, so it’s best to have an experienced family law attorney represent you.

Do you need the house?

Can you keep the house? Should you? The answer to these questions is about more than real estate. Keeping or selling your house post-divorce can be an emotional process which is reflected in the empty space and vacant bedrooms of your once lively household. Even the process of deciding where to live after getting divorced can be challenging.

Your decision may also impact your divorce proceedings. If your goal is to have an amicable divorce, we provide a great cost-effective option. And the team at Green Giraffe Legal will help you understand the divorce process and get it right the first time. Green Giraffe Legal Services offers flat fee divorce options that can save you time, money and stress. Being friends after divorce is possible and Green Giraffe Legal will work with you to achieve that.