Many people begin divorce negotiations with the same goal. If they own a home with their spouse, they decide that they want the house when they divorce. After all, the marital home may represent years of investment. It may have a higher fair market value than any other single resource the spouses share with one another.
However, spouses don’t have to stay in the marital home to share its value. They have the option of requesting equity from the spouse who stays in the home or keeping other assets that are worth a comparable amount. Some people realize upon careful reflection that letting go of their attachment to the marital home is the best path forward during a divorce.
What factors might make leaving the home and seeking equity or other assets the better option?
1. Low income and compromised credit
The spouse who stays in the marital home frequently needs to refinance it. They have to remove the other spouse from the note. Many people may struggle to qualify for a mortgage without a cosigner.
If the plan is to withdraw equity to compensate the other spouse, then it may be even more challenging for one spouse to qualify for a mortgage on their own. For some people, leaving the home is the best financial option.
2. The demands of home maintenance
People may also struggle to handle all of the tasks associated with cleaning and maintaining a home on their own. Couples usually share those responsibilities, and one person might underestimate how much time they have to commit to the property without the support of a spouse.
If they cannot handle all of the responsibilities on their own, they may have to hire people to assist them with certain tasks. That can amplify the financial strain generated by carrying a mortgage alone.
3. Memories of the marriage
Letting go of a marriage and the home where the couple live together can be bittersweet. Still, trying to stay in that home after the divorce can be even more difficult.
The spouse who stays in the marital home might have a hard time moving on after the divorce, as they are constantly surrounded by memories of their marriage. Getting a fresh start in a new location can be beneficial to the emotional healing that people must undergo after they divorce.
Taking the time to think carefully about the prospect of staying in a marital home can help people develop reasonable long-term plans as they prepare for divorce proceedings.