When keeping a home might make sense in a divorce

| May 11, 2020 | Divorce |

You may feel an attachment to your Virginia home after many years of making a life for yourself and your family there. In some cases, it may be possible to keep the home after your marriage officially comes to an end. Of course, just because you can keep the house doesn’t mean that it is in your best interest to do so.

It may be difficult to finance the purchase

In most cases, you will need to agree to purchase the other spouse’s ownership interest in the property. This could be done by refinancing the home and cashing out any positive equity that it has. However, there is no guarantee that you will be approved for a mortgage even if you have a job and money in the bank. Of course, there is still a chance that you’ll be approved for a mortgage if you don’t have a job. Lenders may be willing to use alimony or other assets as sources of qualifying income.

Think about your future financial security

Ideally, you will only strongly consider keeping a marital home if you have a low level of consumer or other debts. Furthermore, you should have a sufficient emergency fund and the ability to contribute to a retirement account after paying your housing costs. As a general rule, housing costs should take up no more than a quarter of your monthly income.

Treat the home like any other investment

It is important to consider how the home fits into your overall investment portfolio. Buying real estate can allow you to diversify your portfolio, and the real estate sector tends to be more stable than the stock market. You may have to pay taxes on any profit that you make upon selling a house.

Almost any asset that is acquired during a marriage may be divided in a divorce settlement. An attorney may be able to help you learn more about keeping a home or any other asset that you might have an attachment to.