Part of every divorce is deciding who gets to keep what. In fact, dividing marital property is generally the reason most divorces take so long and possibly end up in court. Deciding what you want to fight for can be a very difficult decision. For some people, their decisions are based on sentiment while others fight tooth and nail for something simply out of revenge. While it might be tempting to insist that you keep your future ex-husband's cherry red classic Corvette, it is more important to focus on your future and what you need to be financially comfortable.
Usually, the family home is one of the most major assets a couple owns. It is also a source of contention during the settlement process. Before you decide that you absolutely have to have it, it is important to consider certain factors.
Costs of keeping the house
Keeping your home in Solana Beach might be extremely expensive. If you cannot afford the mortgage payments on it, you should definitely consider alternatives. The same holds true if you cannot afford maintenance costs. Owning property typically includes managing things like landscaping costs, air conditioning and heater repairs, the cost of renovations or just maintaining the structure in general. If you do not have the funds to cover these costs, fighting for the house may not be your best option.
Selling the house
One option is to sell the house and split the proceeds with your ex. Be sure to obtain a current appraisal and factor in expenses like closing fees and realtor commissions. Also, take into consideration the tax consequences of selling the house. There could be a capital gains tax you will have to pay if the sale price exceeds the allowable exclusion. Your accountant can help you understand the tax issues that may be part of the sale.
What assets will you lose?
If you do choose to keep the house, keep in mind that you will have to give up other assets to do so. Weigh the pros and cons carefully before you make your decision. You could be giving up something far more valuable if you opt to keep the family home.
If you are considering divorce, it is important to understand how property division can affect your financial future. Before you agree to a settlement, be sure you completely understand what you are getting and what you are giving up.