When long-married couples who are empty nesters or never had children divorce, the decision about what to do with their home isn’t complicated by what is best for the children, as it may be for parents of younger children. That doesn’t mean all couples going through what’s often called a “gray divorce” automatically choose to sell their home and split the proceeds.
Sometimes a spouse wants to keep the home, especially if there’s no longer a mortgage. They may have strong emotional ties to it, particularly if they’ve raised a family there. They may also have neighborhood or community ties or simply not want for look for a new place.
Determining what’s best for you
All of these are understandable reasons for keeping the home and giving your spouse assets equivalent to the value of their share of the home. However, it’s important in divorce to make decisions based on what’s best for you in the long run, which may not be what “feels” right at the time. This is why it’s crucial to have an experienced legal representative as well as possibly professional financial and tax advisors – especially if you and your spouse are dividing significant assets.
If you’re considering seeking to keep the home, even if your soon-to-be ex is happy to give you their share, it’s critical to look at how it will affect your financial future at this stage in your life. That means determining how much it will cost you each month. Even with no mortgage, you’ll still have property taxes and insurance, which can be costly. You’ll also have utilities, maintenance costs and other expenses.
If you determine that you can afford to keep the home and want to remain there – at least for the foreseeable future – then you’ll need to get the accurate current value and determine what your spouse will get in return. If your spouse also wants to stay in the home, then you need to prepare for some serious negotiations.
All of this is a lot to think about. That’s why having sound legal and other professional guidance can help you as you make these difficult decisions throughout the divorce process.
