Going through a divorce is never an easy process, especially when it comes to dividing property. One of the biggest assets that divorcing couples have is their home, and deciding what to do with it can be a difficult decision. Should you sell your house in a divorce or should you keep it? Here are some things to consider when making this decision.
Income Requirements One of the first things to consider when deciding whether to sell your house in a divorce is the income requirements. Can either of you afford to keep the house? This includes not just the remaining mortgage, but also taxes and insurance, as well as maintenance and necessary upgrades. If neither of you can afford to maintain the home independently, then selling the house may become the more feasible option.
Children’s Needs If you have children, their needs should be a top priority when considering whether to sell your house in a divorce. Depending on the situation, it may be beneficial to continue jointly owning the home to avoid disrupting their lives any further. Consider school districts, location, and future plans, as well as whether it would be better for the children emotionally to begin life in a new situation or to limit changes as much as possible.
Sorting Out the Mortgage If you and your partner have a joint mortgage, you may want to consider sorting out the mortgage so that only one partner has their name on it. This can provide several benefits, such as the person who stays in the house not having to rely on their former partner for the mortgage. The person who removes their name from the mortgage may also be able to borrow more for a new home without their name on the mortgage of the house they shared with their former partner. Additionally, removing one person’s name from the mortgage may help break the link that ties your credit together, since it removes joint-debt.
Ultimately, income requirements will help determine what makes the most sense regarding the future of the house. If you are considering owning the home independently of your former spouse, start by talking to a mortgage lender, who can tell you exactly what you can afford. If you cannot afford the house on your own, you may be able to get a “guarantor mortgage,” where a relative agrees to make the mortgage payments if you can’t.
