Will we have to sell the house? Where will the kids and I live? These are some of the most common questions that people have when they are first faced with the prospect of divorce. And because the home is such an emotionally charged issue, some people will do almost anything to stay in the home even if it is financially devastating for them. It’s a known fact that when emotions get in the way, bad decisions are made because one is unable to think logically. But since the home is also the biggest asset a couple has next to retirement, making a bad decision like this can have a significant negative impact on your financial future for years to come. So, how do you make sure you do the right thing? It comes down to exploring your options with the home and removing the fear of the unknown, so you can make the best, informed decisions for you and your family.
A very common scenario is when the stay-at-home parent or the major caregiver of the children says to the other spouse, “I want to stay in the marital home no matter what.” What this typically means is that that spouse is giving up their rights in the retirement accounts so that they can remain in the home without buying out the other spouse. Unfortunately, this type of trade is rarely equitable and can be financially detrimental to the spouse who now has no retirement funds and who most likely, cannot even afford to stay in the home.
This podcast covers the options you have when it comes to the marital home. Having a CDFA® illustrate the different options available to you, will allow you to make sound decisions based on financial fact rather than on emotions. You may find, that you do not have to sell the home right away. Maybe you wait a few years until your youngest graduates from high school to allow the family to adjust to the new changes. At that point, you agree to sell the home or maybe you will be able to buyout your spouse and retain ownership. But the only way to know for sure which option is best for you, is to explore all the options in the beginning of the divorce process so you can make the right decision.