Dealing With Property Division After Divorce

On May 31, 2011, in Divorce, by Justin Velthoen
property division during divorce

Property division during divorce can be a stressful challenge.

She’s moving home to Wisconsin. You’re considering renting an apartment. It’s closer to work, and there’s no way you can keep up with mortgage payments with your household salary sliced in half. The marriage is over, you’ve accepted that. But what happens to the house?

Settling on property division after divorce is often one of the most difficult aspects of one of life’s most challenging times. Co-ownership is an option, but requires a certain level of civility that often doesn’t exist following a marital breakup. Sole ownership is another possibility, but typically requires something be sacrificed – perhaps a retirement investment – to gain the home. And, as in many cases, the home is sold and the financial gains divided.

Maintaining sole ownership of your home

While your household income may be changing, your mortgage, bills and home maintenance expenses are not. Before pressing too hard to keep your house, decide whether you can afford it. If you can’t, refinancing may be an option, depending on your income and credit history.

In addition to your mortgage, other expenses to consider include monthly electricity, gas and water bills, as well as cable, Internet, phone and other elective services you want. Also, consider yard upkeep expenses and snow removal, and always factor in extra to accomodate for the inevitable hot water heater meltdown or sewer backup. And lastly, be sure to factor in property taxes.

Are we better off selling?

It’s not uncommon for divorcing couples to decide that selling the property and moving their separate ways is best for both, financially and emotionally. But in today’s housing market, how long will it take to sell? How long will the property have to sit vacant before you’re relieved of managing the monthly mortgage payment? The thought of it can pile on even more stress to an already-difficult situation.

Couples going through a divorce already have to deal with deciding who gets the flat-screen TV, the bedroom set, and the countless other belongings that fill a house. Removing the home sale from the equation can relieve a huge burden. Toucan Homes can help. By working directly with lenders, investors and homeowners, we specialize in property division solutions and quick sale opportunities to ease an otherwise trying time. Call us today to see how we can help you.

Justin Velthoen of Toucan Homes is a real estate professional. The content presented above should not be considered tax or legal advice, and is intended only to assist homeowners in finding general answers to their questions. Toucan Homes recommends that homeowners seek professional tax and legal advice from a licensed lawyer and/or custodian.

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