Homes are among the most valuable assets the average person owns. Naturally, they tend to become a big topic when couples divorce. One or both parties may decide that they want to keep the property.
But is that always wise to make keeping the house a goal? Maybe not.
You could end up “house poor”
The rule in California is for community property to be split equally, so if your total marital estate is worth one million, and your house is worth half a million, keeping it would mean your spouse would get everything else.
As great as a house is to have, savings, investments and other assets are also useful. You need to consider how much of an advantage or disadvantage it will be to have all of your assets tied up in the property once the divorce is over.
You may not be able to afford it
If the house still has a mortgage (and it probably does), you’ll have to refinance it into your own name to keep it after the divorce. Unfortunately, this might not even be possible, as lenders may not feel that one person has enough income to pay a mortgage previously covered by two incomes, especially if the spouse ceding the house is the biggest earner.
Then there are the ongoing costs, such as bills and property taxes, and the irregular ones, such as repairs to consider. You have to consider all of the costs associated with homeownership and determine if you can handle them on one income.
You could end up unable to move on
Keeping a house can sometimes make it harder to move on with your life after a divorce. Staying where you are constantly reminded of the life you had may become emotionally difficult. If you decide shortly after the divorce that you need to relocate, you may have trouble selling it as quickly as you want.
Keeping the family home indeed has its benefits. Sometimes, it can help you keep life stable for your children or allow you to remain where you are comfortable and surrounded by a solid support network. However, it’s always wisest to step back, look at the potential negatives and take a dispassionate approach to the issue before you proceed.
As you can see, there is a lot to consider when thinking about what happens to your house in your divorce. Legal guidance can give you some fact-based information on a matter that can be highly emotional.