Going through a divorce is often a difficult time emotionally, and selling the house, is, at a minimum, a discussion point.\u00a0 Many people report nothing feels stable during a divorce. \u00a0Especially when divorce is an unexpected event, it leaves people looking for stability. \u00a0Often, this takes the form of the family home. \u00a0But is keeping the house really the best decision?\u00a0 Below are several things to consider when deciding whether selling the house is best for you.<\/p>\n
As stated above, home represents stability at a time where everything else feels up in the air.\u00a0 Also, your home has history for you and your family.\u00a0 Perhaps your children grew up in that home.\u00a0 Certainly, your home is where you spent happy days.<\/p>\n
Notice, these reasons for keeping your home all relate to the past. \u00a0Stability is appealing, but is the house truly what provides stability? \u00a0Make a list of all the reasons you want to keep the house. \u00a0Consider, is there some other way to achieve the same feeling. \u00a0For example, perhaps your house is set back from the street, making it feel private and safe. \u00a0However, living in a gated community or a secured access condominium would provide the same sense of privacy and safety. \u00a0Evaluating what you look for and other ways to meet those needs results in careful consideration of maintaining ownership of the home.<\/p>\n
If you keep the house, consider how long you will keep the house. \u00a0If you plan to keep the house indefinitely, that may be reason enough to keep it. \u00a0Ongoing appreciation justifies the expense of refinancing the home.<\/p>\n
However, if you live in the home a few years until the children are grown and gone, consider the cost of keeping the home. \u00a0Your spouse expects you to refinance taking his or her name off the mortgage, a significant expense. \u00a0Those expenses may exceed the increase in value over the short term you will be in the house.\u00a0 Of course, you have to balance this against what is in your children\u2019s best interests.\u00a0 They may find security in the home as well.<\/p>\n
If the plan is to maintain the home for the children for a short time, perhaps continuing to own the home with your ex-spouse is the solution. \u00a0This avoids the cost of refinancing and will split costs of selling the home.<\/p>\n
Be advised, this results in an ongoing relationship with your ex-spouse. \u00a0You will not be making a complete fresh start until you sell the house and find your own place to live.<\/p>\n
Consider the emotional cost.\u00a0 Does every room of your house remind you of the divorce?\u00a0 In addition, will you be able to begin a new relationship in that house?<\/p>\n
You mortgage payment may increase after refinancing to pay-off your ex-spouse. \u00a0Do not forget about costs of home upkeep. \u00a0Will the roof need to be replaced? \u00a0How old are the appliances? \u00a0Home ownership brings unexpected, unscheduled expenses. \u00a0These expenses are significant. \u00a0Further, the costs may not be recouped when you sell the home. \u00a0For example, if you spend $15,000 on a new roof, this will not automatically add $15,000 to the value of your home. \u00a0Buyers expect a home to have a roof that does not leak. \u00a0The same applies with many appliances, such as a water heater and washer \/ dryer.<\/p>\n
If you agree to take the equity of the home as part of your property settlement, consider what you have to give up. \u00a0You will be dividing your property between yourself and your soon to be ex-spouse. \u00a0Can you sacrifice even more to keep the home? \u00a0For example, it is tempting to sacrifice your retirement benefits because those benefits are not immediate. \u00a0Consider the time you have to rebuild your retirement. \u00a0Is keeping the home for a few years worth delaying your retirement? \u00a0If you need to sell the home in the future anyway, are you simply delaying the inevitable?<\/p>\n
Make sure to explore any tax consequences to keeping your home. \u00a0Capital gains taxes and exclusions for the sale of the home are significant. \u00a0Consequently, a sale while the home is in both names is advantageous \u2013 or at least not financially painful in the future.<\/p>\n
If you consider selling your house, work with the right realtor. \u00a0This is not the time to use your soon to be ex-brother in law for the sale. \u00a0Inform the realtor of your situation. \u00a0The appropriate realtor has experience with divorcing couples. \u00a0Communicating with both parties creates an extra step and requires patience on the part of the realtor.\u00a0 Further, both parties must be onboard with the sale. \u00a0If one party is dragging his or her feet, selling the house will be difficult. \u00a0It is easy for the party living in the home to sabotage a potential sale, by leaving a mess or making the home unavailable for showings. \u00a0Both parties benefit from a quick sale for the best price.<\/p>\n
Deciding to sell the family home is extremely difficult. \u00a0It is easy to say it is important to set emotion aside but it is difficult to do. \u00a0The decision does not need to be made immediately.\u00a0 Take some time and consider your options. \u00a0Work closely with your attorney.\u00a0 \u00a0Make the decision that is best for you and your family after careful consideration and discussion with your attorney.<\/p>\n