See Birmingham Divorce Attorney Answer:A divorce can turn your entire world upside down. Everything about your life is changing, so it is only natural to want to maintain some stability in your life by keeping the family home.
Oftentimes the family home is the most valuable marital asset in a divorce, so there may be disagreements between the divorcing spouses when it comes to deciding what happens to the family home.
Most moms with kids want to stay in the family home because it represents stability for the children. However, keeping the family home might not be the best decision and depends on many different factors. There are many things to consider before making the decision whether or not to keep the family home after divorce in Alabama.
Here are some things to consider from an emotional as well as financial perspective before making the decision to keep the family home after divorce.
From an emotional perspective, some people think that staying in the same house – absent one member of the family – that things will be the same. When one's entire world seems to be falling apart, the family home may seem to be the only stability in a world turned upside down.
While initially it might seem like a good idea, eventually you'll realize that life is indeed different and you won't be able to pick up the pieces of your life by reliving the memories of happier days gone by.
Financially the family home might be too expensive now that there is only one income. When deciding whether or not to stay in the family home, you'll need to look beyond the monthly mortgage payment. Make sure to include maintenance of the house and the property, include real estate taxes, any special assessments and HOA dues.
How long do you plan on staying in the home? If you're only planning on staying in the home for a few years, until the kids are grown and off to college, consider how much refinancing the home will cost. You'll most likely have to buy-out your spouse and refinance the home. If on the other hand you plan on living in the house forever, refinancing costs won't be an issue.
If your children are older and will be off to college in a few years, perhaps you and your ex-spouse can agree to jointly own the home. That way you won't incur refinancing expenses and the monthly expenses will be manageable. Make certain to consider all the tax implications when structuring this type of arrangement into your Alabama divorce settlement.
If you've experienced significant appreciation of the property and will be selling the home in a few years you may want to sell the home during the divorce to avoid capital gains tax. When you sell your home (primary residence), you can make up to $250,000 in profit without paying capital gains tax if you're the sole owner of the house. You can exclude $500,000 in profit without paying capital gains tax if you're married.
Going through a divorce in Alabama can be extremely overwhelming. When trying to decide if you should keep the family home after divorce be sure that you're considering all the financial implications before making this important decision.
If you're considering a divorce in Alabama and would like more information about your legal rights, contact Birmingham Divorce Attorney Steven Eversole for a free initial consultation at 1-866-831-5292.