The family home is one piece of property over which a divorcing couple will often battle. In addition to the cash value of the home, the sentimental value may influence both party’s desire to keep the home. However, once the divorce is finalized and tempers have cooled, it is always a good idea to think about the pros and cons associated with maintaining your recently won residence. The decision to remain in the marital home after the divorce is over could significantly influence your personal and financial future.
Can You Afford it?
Affordability should be your primary concern when deciding if you should stay in your marital home after a divorce. Once the divorce is finalized, it is normal for an adult to be short on cash and overwhelmed by the responsibility of managing a household with only one income. If you were a stay-at-home parent who is awarded spousal support or a parent now receiving child support, your available funds are often finite and depend solely on whether or not your former spouse makes timely payments. Before committing to staying in your home, calculate how much money you will need to pay your mortgage, utilities, purchase necessities, and keep your household solvent without aid.
Are There Tax Benefits?
Owning a home usually means that you are able to receive multiple tax benefits that are not available to renters. After a divorce, the mortgage interest, property taxes, and other property-related tax write offs can be beneficial. If you decide to sell your home and move into an apartment or into a home with other friends or family, those potential tax benefits are lost. Remember, a house is an asset that provides more tax benefits than most other purchases, and after your divorce, you will be the sole beneficiary of those tax perks.
What are the Alternatives?
The most important thing to ask yourself before initiating the sale of your house is what are the alternatives to living in your current home. Will you be able to afford another house? Will you need to move into an apartment? Though downgrading is usually a good way to save money, it is possible that the area you want to live in does not have any desirable properties that are less expensive than your current residence. The last thing you want to do is move into a less attractive residence that gives you no financial benefits.
Talk to an Attorney
Before making any choices regarding what assets you want to keep during a divorce based on your post-divorce plans, it is best to talk to an attorney. An equitable distribution attorney will help you review marital assets and decide what property is beneficial to you in the long run. The attorneys at Lawrence Law Office understand how overwhelming asset division is and we are prepared to help you make choices that will set you up for a comfortable future. Contact our conveniently located Columbus, Ohio office today to schedule a consultation so that we can discuss your needs.