Of all of the assets that you and your spouse purchase together, your home is probably the most valuable. It may also have the most significant emotional value, as it is where you raised your children or hit crucial milestones in your life.
It can be hard to make a practical choice about an asset that has both financial and personal value. Many people dig in their heels and demand that they want to keep the home as they start considering divorce. However, there could be several very valid reasons for you to not pursue sole ownership of your marital home in your upcoming divorce.
Your mortgage could be underwater
If you bought your home in the last few years when the market was very competitive, recent adjustments following rising interest rates might mean that your home can no longer command the price it did when you made your offer.
You might actually owe more on the home than you could sell it for currently. Taking on that mortgage might be more of a burden than it is worth for you during what is already a transitional time in your life.
You may not qualify for a mortgage on your own
Couples typically combine their resources and incomes so that they can buy as much house as possible. Even if you have made significant advances in your career since first buying the home, you may not have enough income on your own to qualify for the necessary mortgage.
After all, not only will you have to account for higher interest rates that will impact how much principal you can afford, but you also have to consider withdrawing equity to compensate your spouse, which will also increase how much you have to pay.
You may not be able to maintain the home
Even if you can afford it financially, it may not be practical for you to take care of a large home and a yard without the support of a spouse. Solitary homeownership is very demanding and can quickly strain not just your daily schedule but also your finances, as you will have no second income to help you replace that broken window or fix the leaking pipe that just destroyed your first floor drywall ceilings.
Being realistic about your goals related to property division will help you secure the best results in your upcoming divorce.
