The Marital Home in Divorce
A desire to keep the family home is a common knee-jerk reaction to impending divorce. But is keeping the home really in your best interest? By analyzing several factors, Cathy will help you determine if staying in the home on your own truly makes financial sense for you.
Market conditions will play a large part in this decision. A real estate professional or appraiser should be involved to help you determine your home’s value in comparison to similar properties in your area. Then, Cathy will help determine each spouse’s share of the equity – or shortfall – in the home.
Home Equity and Divorce
If your home has equity in it, you will need to buy out your spouse’s share of that equity –either with cash or by adjusting the division of your other assets – in order to stay in the home. Remember, if you and your spouse have a mortgage, you will need to qualify for a new mortgage. This may be significantly more difficult as a single borrower using only your own assets and income. Given the cost of other housing options, Cathy can help you determine if an equity buyout, or leaving the home and having a larger settlement would be better for you in the long run.