EP 15: Should You Keep Your Home When Divorcing? (Part 1)

Welcome to the fifteenth episode of Divorce and Your Money Podcast. Your host, Shawn Leamon, MBA and a Certified Divorce Analyst, discusses who should keep the marital home following a divorce.

This issue is usually a major financial decision involved in divorce. You need to know four key details before deciding what you want to do with your house: (1) whose name is on the title, (2) how much is the home worth, (3) how much equity you have in the house, and (4) maintenance costs.

You first need to see whose name is on the title.  Both spouses can be the owners of the house. If your name is not on the house, you might not be a legal owner of that property. It is very important to check the specific titling of the house. You also need to know if any lien exists on the house.

Then you need to determine how much your house is worth. You can use such online sources as Zillow or Redfin to determine the approximate value of your house. This information is not necessarily accurate, but it is free. The paid method is more precise, which involves hiring a real estate appraiser. Some firms specialize in divorce real estate appraisal. You should consider this option if you have an expensive or unique home.

Next you need to determine how much equity is in the house, which is the value of the house minus the mortgage. It is the money that is left after paying the mortgage. Regardless of the situation, you need to be aware of this amount.

Finally, you need to determine the maintenance costs of your house, for example, how much is required each month for the upkeep of the course? Having this information can save you from making a decision that will cost you a lot more later.

Key Learning Points:

• Four key details are important: name on the title, value of the house, equity that you have, and maintenance costs.
• Check to see whose name is on the title and if any lien exists.
• Determine the value of the house using online sources or hire a real estate appraiser.
• Determine how much equity is in the house.
• Determine the monthly or yearly maintenance costs for the house.