Avoid these divorce mistakes regarding your family home
On behalf of Barli & Associates LLC posted in divorce on Wednesday, September 27, 2017.
Divorcing New Jersey residents may need to face the difficult fact that they will not be as financially secure after divorce as they were in their marriage. If you and your soon-to-be ex-spouse have been living well within your means during your marriage, you will have an easier time adjusting to the financial aspects of life after divorce. That said, the following two financial mistakes regarding your family home could still prove detrimental to your financial security:
Don’t keep a home you can’t afford: You might love your home, but is it financially feasible for you to stay in it after divorce? If both you and your spouse are working, and you have a two-income household, you need to realize that you will not have as much money available to maintain your home. Be sure to calculate mortgage payments, insurance costs and upkeep expenses to determine if your budget can support these expenses.
Be wary of accepting real estate assets instead of liquid capital: To turn your home or other real estate into cash, you’ll have to jump through quite a few hoops, and there’s no guarantee of the outcome. Will you be able to sell your home quickly, or will you need to wait a long time before you find a buyer? Does your home come with significant tax consequences relating to capital gains liabilities? Also, how much will your home cost to maintain on an annual basis? Be sure to consider these factors before you accept the family home instead of more liquid and easily sellable assets.
Every New Jersey spouse should consider the above two issues carefully when it comes to the family residence in their divorce case. Your divorce attorney can help you weigh your legal rights options regarding this topic.
Source: CNBC, “When it comes to divorce, not all assets are equal,” Sarah O’Brien, Sep. 22, 2017