If you’re already a homeowner and you’re going through a divorce, you may be interested in keeping the house. You don’t want to go through the process of buying another home, especially with the real estate market being as competitive as it is right now. Maybe the house that you bought is already one that you consider a dream home, and you are never planning to move.
It is possible to keep your home after divorce. But there are some important things to consider.
Buying your spouse’s share
First of all, you have to buy out your spouse’s ownership in the house. You can usually do this by giving them other marital assets, like a bank account or a retirement account. You may also be able to purchase ownership from them by getting a loan.
Refinancing your mortgage
Speaking of getting a loan, if you’re using a mortgage loan for your house, you likely need to refinance during the divorce. Your ex will not want to be on the mortgage paperwork with you, so refinancing puts it in your name.
Creating a new budget
Finally, consider the ongoing costs of owning a home. You need to consider upkeep, maintenance, taxes, insurance and much more. It’s helpful to sit down and make a post-divorce budget to ensure that all of this is going to be affordable on one income. Even if you get the rights to the house in the property division agreement, can you realistically afford all of the monthly costs when you are no longer married?
As you work your way through a complicated divorce, be sure you understand all of your legal options. That way, you can start on this new phase of your life with confidence.