How to Avoid Costly Housing Mistakes During and After a Divorce: What You Need to Know About Your House, Your Home Loan and Taxes
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"Once you know how a divorce affects your home, mortgage, and taxes, critical decisions are easier. Neutral, third-party information can help you make logical, rather than emotional decisions."
Divorce is rarely easy and comes with many difficult decisions, one of the most important of which is what to do about the house.
Once you know how a divorce affects your home, mortgage, and taxes, other more emotional decisions are easier. Most people involved in a divorce find it helpful to access some non-emotional, straightforward, specific information and answers in the midst of the heavy emotional and financial turmoil so they can make logical vs. emotional decisions on the basis of neutral, third party information.
For many, the first decision is whether they want to continue living in the house. On the one hand, the familiar surroundings may bring comfort and emotional security, but on the other, these same surroundings may evoke unpleasant memories. Is it important to you to minimize change by staying where you are, or would you rather have a fresh start by selling your home and moving to a new place?
1. Sell the House Now and Divide Up the Proceeds
Your primary consideration under these circumstances is to maximize your home's selling price. We can help you avoid the common mistakes most homeowners make that compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.