Married residents of McKinney, Texas, may feel that they get emotionally attached to their marital homes as many memories of their married life are a part of that home. That might be the reason for many bitter legal fights between spouses in the event of a divorce.
Of course, since the marital home carries significant social and cultural weight, a divorcing spouse must think financially and not emotionally. It is important for a divorcing spouse to think and analyze the value and cost of retaining the marital property as an asset for a better and more secure financial life ahead.
There are several factors that can have an impact on the real value of the marital home and it may be a good idea to determine if getting a marital home will help financially or if it will complicate financial matters in post-divorcelife. There are some important factors that can help the person to decide if retaining the marital home during property division will be a good financial move:
- If the other spouse wants to be taken off of the mortgage, will the first spouse be able to refinance?
- After retaining the house, will the first spouse be able to afford the real cost of owning the marital home?
- If the first spouse wishes to retain the marital home as an asset, how long will that person stay on the property? The spouse will only get the maximum value if the property is sold. It is important for the spouse to understand the goal in the situation.
- There may be tax implications after retaining the marital home and the spouse may have to pay significant capital gains on the marital property.
Spouses who are contemplating a divorce may wish to get more information because, in addition to understanding the emotional and sentimental aspects of a divorce, the right approach may also help a separating spouse to make practical decisions pertaining to property division without making the relationship worse.
Source: Huffington Post, “Keeping The House After Divorce,” Kathleen B. Connell, Feb. 20, 2013