Divorcing couples in Kentucky have an endless list of matters to address, from child-related issues to what will happen to the family home. Instead of focusing on the future, some people focus on their past, and want to keep the house for sentimental reasons. However, in reality, it might not be a financially viable option.
Refinancing the mortgage
The spouse who wants to keep the home might have to get a new mortgage, and qualifying for financing may be more difficult on only one person’s income. Even after successful refinancing, the insurance and real estate taxes might be unaffordable. Tax laws may be unfavorable and proper planning is crucial if the house is sold after the divorce. An upside-down mortgage means the amount owed on the home is more than its value, making it even more complicated.
Affordability of keeping the home
The spouse who wants to keep the house may have to buy out the other spouse’s equity share. In some cases, the two parties agree to continue co-ownership until their children graduate. If so, they sometimes share the costs of upkeep. However, the two spouses will remain in each other’s lives until the property’s eventual sale, making it more difficult to move on.
If selling the house before the divorce is finalized, the couple will typically share the repairs and closing costs. Selling it after the divorce will put that financial burden solely on the spouse who keeps the house.
- Predicting the ebb and flow of the real estate market is difficult.
- The decision to sell the house might depend on the need for money to settle debts.
- Keeping the family home could be impractical; a smaller space might be a better choice.
- Making a clean break is difficult while surrounded by past memories.
Every couple’s circumstances are unique, and there is no one-size-fits-all list of instructions to follow when going through a divorce in Kentucky. It is helpful to have the moral support of family and friends, as well as the support of legal, financial and real estate professionals.