Real Estate and Divorce, what you need to know.

Divorce: What You Need to Know About Your House, Your Home Loan and Taxes

How to Avoid Costly Housing Mistakes During and After a Divorce

Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about the house.

In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straightforward, specific information and answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. A neutral, third party can help you make logical worthwhile decisions, with useful information, rather than making emotional ones.

Probably the first decision is whether you want to continue living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?

Only you can answer those questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? We can help you to determine what you can afford.

You also need to consider do you have a Separation Agreement in place?

Items to Consider:

Review your tax withholding status at your job. If you become ’single’ again you will have to determine if you’re having the correct amount withheld from your paycheck by your employer. If you have too much taken out of your paycheck, you’ll lose the use of that money until you get your tax refund. However, if you have too little withheld, you might have to pay a penalty.

You also need to update your insurance needs. Perhaps you need to increase or decrease or coverage depending on your situation, or consider a different type of insurance. Perhaps you can consolidate your policies with the same company to save money. Call your Insurance Agent for more information.

Update your will, emergency contact list, and beneficiaries. Keep your legal documents up to date with every change in your family situation. You don’t want your ex-spouse to inherit your house. Besides updating your will, review the beneficiaries you declared on all your retirement accounts and insurance policies.

This information is not intended to offer legal advice. Please consult a lawyer for legal advice.