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Calculating the cost of post-divorce home ownership

On Behalf of | May 27, 2020 | Divorce |

For many residents in Georgia, the thought of having to move and sell their home when they get divorced only adds to the sense of loss they may feel when their marriage ends. Parents with young children still at home may also want to try and keep their house as a means of maintaining some stability for their kids during a time filled with many other changes. However, before rushing to keep a home after a divorce, it is important to evaluate the decision from a financial perspective. 

As explained by Kiplinger, the true cost of home ownership extends far beyond the monthly mortgage payment. A divorcing spouse should also factor in property taxes, homeowner’s insurance, maintenance and repairs to understand the full cost of keeping their home. Given that a person’s income generally drops after a divorce, it is essential to be honest about the ability to afford all of the things needed when owning a home. 

The Mortgage Reports adds that even if one spouse has sufficient income to afford a family home on their own, they must appropriately address the issue of their mortgage. As most married couples hold joint mortgages, it will be important for this to be changed. Some lenders may allow one person to be removed from a mortgage. If that cannot happen, a new mortgage should be obtained in the name of the person keeping the home only. 

Current low interest rates may make it more possible for one person to qualify for a mortgage than when rates were higher, but the equity in the home may also play a factor.