You might love your home, yet that does not mean you should insist on keeping it in a divorce.
The family home is likely one of your most valuable assets, so hanging on to it may seem like a no-brainer. Yet sometimes, it is better if you let it go. Here is why:
The family home is just one of many assets to divide
When a court looks at dividing property, it looks at the sum of your marital assets. Hence, if you get the house, the court may compensate your spouse in other ways.
The home might not be worth what you think
Let’s say a realtor values your house at $400,000. If you have not yet finished paying the mortgage, that is not its actual value to you.
If the realtor did not notice the central heating system is on its last legs or the roof is about to cave in, you again need to downgrade the house’s true worth in a divorce. You will either need to spend big to repair them or accept that any buyer will offer you less when the survey notices the issues.
Retaining it could hinder your future
Divorce is a massive life change in itself. Yet it is also an opportunity to make further changes. The stability your home provides (or the financial burden it presents) might prevent you from making the leap to a better future. For example, maybe divorce is the opportunity to move closer to family or try living overseas. Or to downsize, slash your living costs and work only three days a week. Or move to an apartment and make constant dusting and lawn mowing a thing of the past.
Understanding all the financial and legal implications will be crucial to ensure you make informed decisions regarding property division in your divorce.
