In many divorces, the only financially realistic option for spouses is to sell the home and divide the proceeds between the spouses. In some cases, one spouse wants to keep the home and can afford to buy out the other spouse’s share.
While keeping the family home can be considered a “win,” it often isn’t in the long run. That can be especially true for older divorcing couples who no longer have children at home.
Divorce can be an excellent time for spouses with grown children – or no children –to downsize. However, too many are still determined to fight to keep a large home that neither of them needs.
Is keeping the home a wise financial decision?
Even if the mortgage is paid off, keeping the home still requires paying property taxes, insurance premiums, homeowners’ association dues and utilities and maintenance costs. According to one certified divorce financial analyst, “If a home is going to be more than 70 percent of your net worth, you should consider whether you can really afford it.”
A spouse might find the home worth keeping for other reasons besides cost-effectiveness. Maybe an older parent is living with them, so it would be difficult to downsize – especially if the home has been modified to make it more accessible for someone with mobility limitations. Maybe it’s highly convenient for work and other regular activities. Even if something like that is the case, it’s still important to consider whether maintaining the home is affordable with the anticipated divorce settlement.
By selling the home or letting the other spouse buy out their share if they want it, a person who is heading toward or already in their retirement years can put the money they save by downsizing into their savings. This can help them maintain the financial stability they’ve planned for in their retirement years.
Deciding whether to fight for the home as well as other valuable assets or to sell them or exchange them with their spouse for more liquid assets is a decision that is unique for everyone. By getting sound legal guidance, Georgia residents are better equipped to make the decision that’s best for them in the long run.