It may surprise you to learn the equity in your home can help long after your Louisville divorce. Some of those who seek a divorce might be in a better long-term financial position if they kept the home as part of the property settlement. However, financial advisers often tell their clients to get rid of the family home for a number of sound reasons.
It is not unusual for people to suffer financially after a divorce. A study by the Center for Retirement Research found that households that have not been through a divorce have a net wealth that is about 30 percent higher than households that have. There is about a 5 percent higher chance that divorced people will run out of assets compared to people who are not divorced. The one exception is divorced women who are single at retirement, and the difference in the study results seems to come down to whether the women in those results kept the house or not. The value of houses usually rises over time. Appreciation has been especially high in the past few years during rapid price increases and competition.
If you are able to negotiate for the house and support the expense the resulting equity in your home can help long after your Louisville divorce especially as you prepare for retirement.
The main reason women are advised against keeping the home is because of the additional costs of insurance, upkeep, taxes and more above and beyond the mortgage. According to one financial adviser, if they cannot keep the home for at least five years after retirement, it is usually a mistake to try to keep it at all. However, if it is possible to manage the associated expenses and maintain ownership for a longer period of time it can represent a source of significant investment and equity over time and into retirement.
People who are going through a divorce might want to discuss what to do with a home and whether keeping it might be feasible as part of property division. In some cases, it might be possible to work out an agreement in which one person keeps the home and the other keeps a larger portion of other assets such as retirement account(s) or their interest in a business or professional practice.
The equity in your home can help long after your Louisville divorce in some cases. What is the best decision based upon your own unique circumstances? We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.
