A Texas couple heading for divorce has many decisions to make, and decisions involving the children are often of the highest priority. However, if they own a home, they may have difficult choices to make concerning that very important asset. A family home may have tremendous sentimental value, but it is also an investment; for some, it is the biggest one. Nevertheless, keeping the home after a divorce is not always financially feasible, and here is why.
When both spouses’ names are on the deed as well as on the mortgage, both share legal ownership and responsibility for the home. After divorce, regular expenses, such as car payments, groceries, savings and other financial demands can be a challenge on a single income. One spouse who is determined to remain in the home after divorce may have to assume all those financial responsibilities in addition to the obligations of owning the home, including:
- Home insurance
- Property taxes
- Repairs, especially if the home is older
- Routine upkeep, such as mowing the lawn, cleaning the cutters and other chores
- The mortgage, which he or she will have to refinance to remove the other partner
Some find it is worth it to use their retirement savings to keep the house, especially if it means allowing the children to maintain their familiar home during a difficult time. It is often necessary for a Texas homeowner to find extra income, such as renting out a room. However, many financial advisors recommend that those who are not able to refinance or cover their expenses on a single income should consider selling the home and starting fresh.