Divorce is certainly an emotional process, but it is also fraught with financial challenges. The property division process, if handled improperly, can threaten you with an uncertain financial future that can severely jeopardize your goals. That’s why it’s imperative that you enter divorce negotiations with a clear plan, including what you want to do with the family home.
Addressing the family home in divorce
For many couples, the family residence is amongst their biggest asset given that they have been building equity for years or even decades. But before fighting with everything you’ve got to ensure that you get the home post-divorce, you need to really consider whether doing so is in your financial interests.
To do so, you need to take several things into account. First, you’ll have to recognize that if you keep the home, then you’ll be solely responsible for the mortgage, upkeep, and maintenance without your spouse’s income. That might pose a financial strain.
You’ll also want consider what you’ll be giving up in exchange for the home. Some assets, like retirement accounts, might have more value to you given where you’re at in life than a home does.
Also, don’t be afraid of a future without the family home. Sure, you might have a lot of fond memories in the home, and your unique circumstances might call for keeping the home. But selling the home to a third-party or your spouse, or negotiating other assets in exchange for your interest in the home can give you an infusion of cash that can allow you to start out your life post-divorce with some financial stability.
Take a holistic approach
To achieve the best outcome possible, though, you can’t just look at each marital asset individually. Instead, you’ll want to look at the big picture and identify what you need and what you want. Only then can you devise the holistic approach that you need to reach the best possible resolution.