For many married couples their greatest asset is the house they own. In a divorce, you may have the option to “buy-out” your spouse and therefore keep the house, or you can sell the house. In order to evaluate whether you should keep the house (that is buy-out your spouse) or sell it, here are a few things you need to keep in mind.
Do you have the funds to buy-out your spouse? If you don’t have the funds to buy-out your spouse, then the question of whether to keep or sell, may be a moot point. Similarly, if you have the funds, but, it by buying out your spouse, it will leave you “cash-poor”, it may not be a good idea to use your available funds to buy out your spouse.
- Do you have the funds for any repairs or emergencies? Even if you have enough funds to buy-out your spouse, you also should have enough funds in reserve for any repairs or emergencies that may occur in the future.
- If you need to obtain a mortgage to buy-out your spouse, can you afford the mortgage? You may qualify for a mortgage, but, that does not necessarily mean that you can actually afford to pay the mortgage ever month. Or if you pay the mortgage, you will have very little left over for any other funds.
- Is a smaller home or a less expensive home a better idea? It may be better to sell the home and then buy a less expensive home. It is at least worth thinking about.
- Are you only keeping the house for sentimental reasons? You may love the house and you may want to stay for sentimental reasons. Yet, it may be better to sell the house, despite its sentimental value.
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