Sunday, April 4, 2021 / by Tom Pileggi
Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about the house.
In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straightforward, specific information and answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional, decisions.
Probably the first decision is whether you want to continue living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?
Only you can answer those questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.
You have 4 basic housing options when in the midst of a divorce:
1. Sell the house now and divide up the proceeds.
2. Buy out your spouse.
3. Have your spouse buy you out.
4. Retain your ownership.
It’s important for you to understand the financial implications of each of these scenarios.
Sell the House Now and Divide Up the Proceeds
Your primary consideration under these circumstances is to maximize your home’s selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original downpayment, and the legislative property laws in your area.
2. Buy Out Your Spouse
If you intend to keep the house yourself, you’ll have to determine how you’ll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.
So here are 2 out of the 4 in an effort to draw attention to this very important topic. If you would like to see all 4, I have put together a free report entitled "How to Avoid Costly Housing Mistakes in the Midst of a Divorce" which explains the issues in greater detail.
To order a FREE Special Report, visit https://www.pileggirealestateteam.com/ or to hear a brief recorded message about how to order your FREE copy of this report call toll-free 1-844-707-8053 and enter 1007. You can call any time, 24 hours a day, 7 days a week. You can also text me at 416-917-6566
Receive your free special report NOW to find out what you need to know to make your move-up to a larger home worry-free and without complication.
Thank you for reading this week’s blog and Go Serve Big!!!
Tom Pileggi, Broker
Pileggi Real Estate Team
Your Home Sold Guaranteed or We’ll Buy It* - If you or anyone you know are considering making a move, feel free to give me a call or pass on my number! 416-917-6566.