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Tag: post-divorce finances

Sell or Keep the Family Home: Post-Divorce

After a divorce, it can be difficult to decide if you should sell or keep the family home. There are plenty of factors that play into this. Everyone’s situation will be different…

Sell or Keep the Family Home: Factors to Consider

Finances

Your financial situation will play a big role in deciding if you should sell or keep the family home after a divorce. Based on your situation, you may have the option to sell the home and split the profit. Another option may be to buy out your spouse to keep the house. You will need to determine which is a better option for you financially.

You may have to speak with a financial advisor or an accountant to see which option is going to be the best financially. Keep in mind there are a lot of financial responsibilities that come with owning a house. You don’t want to start a new chapter of your life with expenses and debt you can’t handle. 

Eligibility for a Mortgage 

Additionally, while deciding if you should sell or keep the family home, you should check to see if you could qualify for a mortgage, if needed. In some cases, one spouse may not be approved to carry a mortgage on their own. This is especially true if they were a non-income earning spouse. You certainly don’t want to make a decision based on thinking you could easily buy another house without making sure you are eligible for a mortgage.

Children

If you have children, especially ones in school, they could be a factor in deciding if you should sell or keep the family home. It can be difficult to uproot children and move them to a different school. Therefore, this may play a role in you deciding to keep you in your current home. Research the schools in the new area you may be considering so that you can make an informed decision. 

A New Start

Sometimes, you may just need a brand new start. A home can hold a lot of memories and emotions. Selling a home can give you the opportunity for a new start. Whether that move is locally, or long-distance, moving into a completely new home may be a deciding factor in whether or not to sell or keep the family home. 

Divorce comes with many difficult decisions to make. Deciding if you should keep or sell the family home could be one of them. Take your time, do your research, and think it through so that you make sure you’re making the right decision.

Post-Divorce Finances: How To Manage

Getting a divorce may not be a cheap process. With things like legal fees and other hidden costs, the total can add up quick. As a result, it’s good to start planning out your post-divorce finances. Having your finances under control can really help with starting your post-divorce life smoothly…

Post-Divorce Finances: How To Manage

Figure out your budget

A budget is the first part of your post-divorce finances. For many people, the budgets they had before won’t work anymore. For instance, the divorce itself could’ve cost a lot. Also, you might find yourself having to move, change jobs, or losing an extra source of income. All that means it’s time to make a new budget. 

First, figure out how much money you’ll have coming in. This can be done on a weekly or monthly basis. Then, you’ll want to figure out what your expenses are. Once you’ve done this, you’ll have your basic budget. That way, you can start planning out your next financial moves. 

Cut extra costs

Getting your budget together is only the first step. After that, you need to make sure that your post-divorce finances are enough to support you. If you find your expenses are more than your income, then it’s time to see where you can save some money. A good way to do this is to cut extra costs. 

Extra costs can be anything that you spend money on that you don’t necessarily need. For example, this could be a subscription to a streaming service you barely use. Or, perhaps it’s money you spend on fast food. Trimming these extra costs can end up seriously saving you a lot in the long run. 

Plan for the future

Remember that your post-divorce finances are very important for your post-divorce life. Your financial situation is going to have a large impact on the things you do going forward. That’s why it might not be a bad idea to have a general plan now, and make some decisions accordingly. 

For instance, do you want to get a better job in the future? If so, it might be worth it now to pay for some extra certification or education if you can afford it. Think of it as investing in your future. You pay a bit more now, but you’ll end up making much more money down the line than you would have.