Life after a divorce may involve many changes. For continuity, some individuals may hope to continue living in their family home. However, that decision involves important tax and financial considerations.
Before deciding to stay in the family home, an individual should draw up a financial plan for his or her post-divorce life. That analysis should factor in an individual’s ability to refinance the mortgage solely in his or her name. In addition to determining an appropriate monthly payment for mortgage or rent, an individual should also remember other costs associated with a home, such as maintenance and home repairs, landscaping, real estate taxes, utilities and other costs. An individual should also consider the desired amount of living space and whether the location is still convenient.
Finally, to the extent that a couple agrees that their home should be sold, there can be benefits to sharing the costs of selling it while a divorce is still pending. If a house sale will yield a large amount of capital gain, that tax could also be shared during the divorce. Additional economies in time and labor might also result when all items in a home are to be moved.
A divorce may seem like an emotional marathon, and assets like a family home may be especially subject to disputes because of memories associated with them. For that reason, an attorney who has experience handling high-conflict and/or complex property division matters in a divorce will be a great help. Our family law firm has helped clients throughout Florida get through the divorce process with grace, while protecting their interests and right to an equitable share of the marital estate.