Owning a home could deliver the most significant boost to net worth. Not surprisingly, negotiations over the ownership of a house could become contentious during Colorado divorce proceedings. Other times, one spouse may feel fine with giving the other spouse full ownership of the home. Regardless of how a recently divorced person gains full ownership, concerns about affording the property may arise. Affording a home could become more challenging when household income changes after a divorce.
Dealing with the costs of owning a home
Owning a home often comes with many expenses, including maintenance, upkeep, taxes, and insurance. Someone who owned a home for many years may be familiar with such costs, but two-person incomes might have previously alleviated the burdens. After divorcing, an ex-spouse may be living in the home and find the costs to be more than he or she initially assumed.
Other matters could complicate ownership for the newly divorced. An ex-spouse may be the person who handled all duties and responsibilities for the home. As the new sole owner, the other spouse could feel overwhelmed. With the proper guidance, research, and approach, finding solutions might be possible. Perhaps working with a financial counselor specializing in divorces would be one option.
The “gig economy” opens doors to earning money with a home. Renting out one or more rooms could generate helpful income. Anyone considering such an option may wish to consider the insurance implications, though.
Divesting from the property
Selling the house outright could work. The owner could use the money to purchase a less expensive home although some may allow their attachment to a “family home” may keep them from making such a move. Unfortunately, sentimentality might work against someone in these situations.
Those yet to finalize their divorces may wish to think about the costs associated with owning a home. Upon careful consideration, some might feel it wiser to sell the house and to divide the proceeds. Perhaps a spouse may wish to negotiate for spousal maintenance to cover some costs associated with keeping a home.
Home ownership and divorce might bring up several concerns. A client may wish to discuss such concerns with an attorney.