The house where you live with your spouse is probably one of your most valuable assets, if not the most valuable property that you share. You may have dedicated years of your life toward paying down the principal balance on the mortgage and also fixing up or maintaining the property.
Putting on a new roof or replacing old, single-pane windows can cost thousands of dollars. You may spend as much as 30% of your monthly income on mortgage. When you start thinking about divorce, you will obviously want to protect your interest in your most valuable property. Should keeping the house be one of your goals as you approach the end of your marriage?
Benefits of keeping the house
There are numerous advantages to retaining the marital home in an Indiana divorce. You won’t have to relocate during what will already be a stressful time. You can enjoy the neighborhood and community that you already know.
If you have children, staying in the same home can help promote stability during a tumultuous period in their lives. You may also have an emotional attachment to the property and many memories created in that space, making it feel like a home that you don’t want to lose. Of course, keeping the home will require significant effort during the divorce and afterward as the sole owner of the property.
The downside of staying in the marital home
Indiana uses the equitable distribution approach to property when couples divorce, so keeping the home means that you will probably have to refinance it. With mortgage rates and real estate prices on the rise, you may have to pay more for the house after the divorce than you pay now, especially when you factor in paying your spouse some of the equity.
Additionally, you will now have to maintain the space without the support of a spouse, which could be more of a challenge than you realize. There could also be as many painful memories in the home as there are pleasant ones after your marriage ends.
You need to have a critical look at your finances and spend time considering the practicality of retaining the home. Knowing the benefits and disadvantages of retaining the home in your divorce can help you plan for collaborative negotiations or your day in court.