Keeping the Home After Divorce

Keeping the Home After Divorce

Can I really keep the family home after divorce?

Buying a house is a significant financial and emotional investment. This makes it a uniquely complicated asset during divorce. While you might have sunk money or formed emotional attachments to other marital assets, usually none are quite as significant as that of the family home.

As a parent, you might feel strongly about keeping the home in your divorce. A parent’s divorce can be hard on kids, and staying in the same home can provide a sense of emotional stability during an otherwise difficult time. You should be certain that this is the right decision for all involved, though — including yourself.

Can you afford to keep the home?

Consider what your finances looked like prior to filing for divorce. Were both you and your ex working and earning comparable incomes? Did you earn less or perhaps did not work at all? If you will be adjusting to owning the house on just your own income, make sure you consider costs other than the mortgage:

• Utilities
• Maintenance
• Taxes
• Insurance

You will also need to have a good idea of what your home is actually worth. Avoid trying to guess, because keeping the home usually means that you will need to buy out your ex’s ownership in the home. You can have a professional real estate appraiser provide an accurate market value for your home instead.

What about a mortgage?

So, you feel like you can handle the costs of owning the home on your own. Unfortunately, getting a mortgage can be a challenge after a divorce. Lenders might be hesitant to work with you if you have a low-paying job or have yet to successfully re-enter the workforce.

This does not mean that you are without options. There are some lenders who will still work with you if your income largely consists of child support and alimony payments. This is usually also based on your assets, which makes securing a favorable outcome during property division important.

Is this the right investment?

While buying a house can be a smart financial investment for some people, it is not always the right decision. Before you make this decision for yourself, consider what the rest of your financial situation looks like. Do you have a solid emergency fund, a good start to your retirement savings and minimal debt? If so, then keeping the home might be the right decision for you.

The family home is just one of many marital assets that you will need to address during divorce. During property division, you will also handle things like vehicles, financial accounts and even household furnishings. While this can seem overwhelming, you can work to minimize some of your concerns by learning more about Washington family law.