Should you Keep the Marital Home in your Divorce?
People going through a divorce might want to keep their marital home, but there are some vital considerations before making this decision.
What’s the Financial Impact?
Think about the financial impact of keeping your home after divorce. A home is an asset which costs money to maintain and keep every month. Costs like insurance, mortgage, utilities, and taxes really can add up. While houses usually rise in value, they may not appreciate at a higher rate than the overall annual expenses. Furthermore, recurring annual expenses may undermine your ability to put money toward savings, retirement, debt reduction, and children’s college funds.
Now compare the marital home’s value to an asset like an investment or retirement account. Investment and retirement accounts have fairly low annual costs and, depending upon the kind of account, may also have annual tax savings. The stock market has demonstrated that a portfolio, properly invested, can outpace it’s costs long-term. Therefore, it is important that you know that even as you might be able to afford to keep your marital home after divorce, it oftentimes comes with a price. The financial specialists at Family Divorce Solutions of San Fernando Valley can help you determine the affordability of keeping your home after divorce through the lens of long-term financial planning.
Alex Weinberger, MBA, CFP®, CDFA®
Marriage Financial Solutions
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