Should I keep the house?

Keeping the house: Consider both facts and feelings

Major life transitions often involve making tough choices. Given that a house tends to be the largest single asset most people own, deciding whether you should stay in your house or not can keep you up at night.
 

But understanding the facts of each situation can help you feel less overwhelmed.
 

And remember — you don’t have to do it alone.


Keep the house

Staying put can be tempting, as it can provide stability for you and your family during a time with a lot of upheaval. If you do decide to stay, make sure you’re prepared financially.

 

  • Make a budget. Remember to account for hidden costs like maintenance and emergencies.

  • Don’t steal (from yourself). If you have to borrow from your retirement plan or other investments in order to make ends meet, staying put may not be worth it.

  • Save for retirement. A house isn't a retirement plan. You could potentially do better to downsize and save for your retirement rather than count on your home equity to support you when it's time.

 

Sell the house
Moving out has its benefits. One of them is it’s a visual cue for a fresh start. If you decide to sell, you can do some preparation to lessen the stress.

 

  • Ask around for agents. Get the names of a few good real estate agents in advance so you can hit the ground running.

  • Do your tax homework. You may experience a change in tax brackets, especially if you’re going from owning to renting.

  • Cover additional costs. Set aside a little money for things like minor repairs or painting that you may need to do in order to get the house ready to sell.

 

Get expert information
You don’t have to do it all on your own. When you put together your team, include professionals who can help you make the most informed decisions.

 

  • Talk to a realtor. A realtor or real estate broker can tell you what your house is worth. This estimate may help you and your former spouse make the best decision about selling or staying.

  • Have someone run the numbers. A tax accountant or certified divorce financial analyst can help you figure out the short- and long-term consequences of selling now vs. selling later.

  • Find a financial professional. A professional can help you prioritize your finances in order to make the best long-term decision.

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