During divorce your family home may be the most valuable family asset you have to address in your financial settlement. Many divorcing individuals want to stay in the family home after the divorce is final however some consideration should be given to 5 other options you may have. Agreeing to sell the family home, split the proceeds and downsizing to a smaller/less expensive living arrangement can be a freeing experience, both financially and emotionally. If you decide to keep and stay in the home as your part of the financial settlement, you may find yourself under enormous financial pressure. Consider all of the expenses of taking on the home ownership versus renting a house or townhome:
Expenses of Ownership
Mortgage payment (can your income qualify for a loan as a borrower with your lender?)
Home Owner Insurance
Utilities of a large dwelling (may be more room than you actually need)
Home Owner Association dues
Upkeep, maintenance and expenses related to appliances, HVAC, Hot Water Heater, roof, etc.
Expenses of Downsizing and Renting
Utilities of a smaller dwelling
Many individuals have been happy to liquidate this valuable asset, pad their bank account and reduce their financial obligations as they seek financial independence.
Brad Burns, Certified Divorce Financial Analyst , Certified Distressed Property Expert offers the following 5 options for the family home :
When a property has equity and payments are current:
When a property has negative equity and is possibly in distress:
Brad P. Burns, CDFA, CFA, CDPE (770) 380-2406
More financial settlement advice and tips in Transitions Divorce Prep Workbook
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