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Is keeping the family home post-divorce right for me?

On Behalf of | Oct 22, 2020 | Divorce

Homeownership is a thing of pride for many people in the Tucson area, which may be why deciding what to do with the family home in the event of a divorce can be difficult. While sometimes it may make financial sense to sell the home in a divorce and split the proceeds, other times one spouse may want to keep the family home, perhaps because they have custody of a child they want to keep raising in the home or even just because they have a sentimental attachment to the home.

Can I afford homeownership post-divorce?

One issue that those going through a divorce have to consider when deciding whether to fight for the family home is whether they can afford homeownership post-divorce. After all, homeownership is costly, and they may be moving from a dual-income household to a single-income household. They will need to determine if they can continue to pay the mortgage, repairs and upgrades, property taxes and homeowner’s insurance on their own.

Keeping the home may make sense for some these days

However, according to one report, keeping the family home in a divorce may not be as costly for some as it once was. In some areas, housing prices are falling, and interest rates are on the downswing. This means that buying out your ex’s share in the home or refinancing the mortgage in your name only may be more affordable than it once was.

In addition, owning property can increase your net worth, although it should only be part of a diverse financial portfolio. Also, there can be tax advantages to keeping the home, or selling it down the road.

Property division and the family home

Ultimately, when homeowners in Tucson divorce, they will have to decide how to divide their assets, including the family home. Arizona is a community property state, meaning that each spouse has an equal ownership interest in marital assets and assets will generally be split evenly in a divorce. There can be a lot of emotions surrounding the family home, so it is important to keep a clear head so you can make sound decisions during the property division process.