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Can you afford to keep the house after a divorce?

On Behalf of | Dec 26, 2023 | Family Law

In some divorce cases, people will make it their goal to keep the family home. Selling the home is a more common solution because both people then can split up the money that they earned. But it’s possible for one person to keep the house if the other person is willing to give up their share.

An important thing to consider at this time is if keeping the house is even affordable. If you’re in this position, it may be understandable that you would enjoy the stability created by keeping the same house, but is it a realistic option?

Refinancing the mortgage

First and foremost, you likely need to refinance your mortgage. You and your spouse probably applied jointly for that mortgage when you initially bought the house. Will you qualify for a large enough mortgage on one income?

Absorbing other costs

Another thing to remember is that owning a home comes with numerous other costs beyond just the mortgage payments. Utilities like gas, electric and Internet services come with monthly bills. You also have to pay property tax taxes every year. This may be handled in escrow by your mortgage company, but it may not.

Buying your spouse’s share

Finally, if you are doing this, your spouse still deserves the value of the other half of the home. So you would have to purchase that from them or trade other assets – like a retirement account or a vacation home – that have roughly the same value.

These are a few things to consider when going through a divorce. Be sure you know exactly what steps to take to accomplish your goals.