Questions That Divorcing Homeowners Should Ask

The marital home is a common point of contention during a divorce. If children are in the picture, one or both parents may hold tight to the belief that keeping the home is vital for the sake of the children. Deciding what to do with the home in a divorce can be difficult, but parents should be careful not to let emotions drive this decision. While there are many things that must be considered, here are three questions that divorcing homeowners should ask.

Can I afford the house on my own?

Between your mortgage payments, utility bills, property taxes, and repair costs, the price of owning a home adds up fast. If you do decide that you should keep the house, a buyout of the other person's interest may need to take place. This could mean refinancing the home, taking out a new mortgage, or giving up other assets in the divorce to cover the other person's share of the home. Once it's all said and done, maintaining the home moving forward becomes your responsibility. Can you afford to keep up with all of the home's expenses on top of raising your children and financing the lifestyle they're used to? The truth is that by choosing not to keep your marital home, you may open yourself up to more financial freedom than if you keep it.

At times, divorcing homeowners may be in a situation where they do want to see, but their mortgage is worth more than their home. If you cannot afford to sell right now, you could consider renting your home until you are more prepared to sell. If not rent, you could both continue living in the home while you pay down the mortgage, but that could quickly prove to be emotionally difficult for your whole family.

No matter the circumstances, don't let your emotions control your decision about the house. Get an expert opinion based on the facts in your situation. Working with a Certified Divorce Financial Analyst (CDFA) can help you analyze this decision among the many other money-related questions you may have. Check out this interview for more about how working with a CDFA can help you make financial decisions during your divorce.

If we sell, how do we handle it?

Divorcing homeowners who've made the decision to sell will have some arrangements to make. In this situation, you must first decide if you're going to work with a real estate agent. You could sell without an agent, but it may be easier and less stressful overall to work with one. Hire an agent you both know and trust, or choose an agent who has experience with divorcing homeowners.

Next, prepare the house for showings. Determine where you need to make touch ups and repairs, then work out a plan for handling those. As showings take place and you receive offers, consider those together as well as with your agent. After selecting an offer, decide how you will split the money. You may want to pay off any joint debts you have left over from your marriage first then divide what is leftover. Speak with your attorney and/or your divorce financial expert for guidance on what is best for you to do with the funds you receive from selling the house. 

If I'm not living in that house, where should I go?

Moving out of the marital home is hard for everyone involved, kids especially. If there is time between moving out of your old home and into your new permanent space, find a comfortable place to stay whether it be with family and friends or a rental. When choosing a new place to call home, do your best to settle on somewhere that will help you uphold your children's lifestyle. Try to find a place that allows you to keep your kids in the same school district, but don't break the bank if doing so is out of your budget.  What's important is that you create an atmosphere of comfort and security in the new place that you and your children call home. Here's an article with more tips for making a smooth transition into a new home with kids after divorce.

Divorcing homeowners have a lot to consider during this challenging time of transition. These are just a few of the many questions that homeowners should ask in a divorce. More than seeking advice from friends and family or doing online research, speak with professionals who can help you make the smartest financial decisions now that will help you and your children thrive into the future.