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Is your home affordable on one income after your divorce?

| Jan 25, 2021 | Property Division |

You and your spouse got married, lived in an apartment for a year, and then bought a home. When you applied for the loan, you were both working and so you used both incomes. That’s how you qualified for the mortgage, and it’s how you determined just how much house you could afford. 

Now, though, you’re getting a divorce. You’d like to keep the house so you can stay there with the kids, and your spouse has actually agreed. They don’t want the home. It seems perfect. But you still have one big question to ask: Can you afford it?

A single income makes it harder to qualify for a mortgage

There are rare cases where divorced couples will agree to jointly own a home moving forward, and it often happens when they really want to work together to keep the children from having to move. Generally speaking, though, keeping the home is going to mean refinancing so that the mortgage is only in your name. In fact, your spouse may demand this because they don’t want to be liable if you default years down the line. 

A single income likely means a smaller mortgage. You also have to consider maintenance and upkeep costs. Beyond that, if the value of the home has increased, you need to pay out your spouse’s share. Even if you want to keep the home and your ex wants you to have it, this may simply not be an option. 

Considering solutions

For a divorce to work, it’s wise to consider all potential solutions carefully. Think about your future, the children and how to prepare for what lies ahead. While working out the division of your property, including the house, it’s often helpful to have some experienced guidance at hand.