January is such a common time to file for divorce that it\u2019s been long known as \u201cdivorce month\u201d among family lawyers. It marks both the end of the holidays and the start of a new tax year, which can make it simpler to financially separate from your ex.
\nA key part of navigating a divorce is deciding what to do with your home. Your property is likely among the most valuable assets in the marriage, and it\u2019s important to take the time to understand your options. The best outcome for yourself and your family may not be the one you expect.
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\u201cThe first thing that I would ask a client is, what would you like to do with the home?\u201d says Kenneth Glasser, an attorney who specializes in divorce and property distribution in New York City.
\nIt\u2019s not unusual to have a deeply personal connection to your home, and divorce can be a time when emotions run high. Maybe you don\u2019t know yet what you want to do \u2014 in this case, a financial planner or lawyer may be able to help you reach a decision.
\nYou could also consult a certified divorce lending professional (CDLP) to learn more about your financial position. A CDLP can model various scenarios for dividing marital debts and assets to help you understand your ability to qualify for a new mortgage or refinance. The Divorce Lending Association maintains a database of these professionals, so you can contact one local to you.<\/p>\n
You\u2019ll need to have the property appraised to determine a fair value. Then, consider your options for covering your ex\u2019s share of home equity.
\nThe most straightforward way to do this is to sell the house and divide the proceeds accordingly. If one of you wants to keep the home, you\u2019ll need to find a way to buy out the other.
\nThis may involve tapping your 401(k) or other retirement accounts, says Angela Zangarola, a certified divorce financial analyst and founder of Quantum Wealth Strategies in Shelby Township, Michigan.
\nFor many couples, retirement funds are the largest asset in the marriage apart from the home. While some folks may cringe at taxes and potential early-withdrawal penalties, this could be their only resource to buy out their spouse\u2019s equity. \u201cYou have to do what you have to do to resolve the situation,\u201d Zangarola says. She recommends that you have a financial professional review your case, as everyone\u2019s situation is different.<\/p>\n
If one of you wants to keep the home and there\u2019s still a mortgage on the property, the person keeping the house will have to refinance the loan.
\nThis is an important part of disentangling your debts, and may be necessary for the other person to be creditworthy enough to buy or rent another home. Until the home is refinanced or sold, if you\u2019re both on the mortgage, then you\u2019re both on the hook for payments.
\nConsider whether you meet lenders\u2019 requirements for a refinance or new mortgage on your own. Even if you expect to receive child support or spousal support, a lender is unlikely to take those payments into consideration before you\u2019ve actually started receiving them for at least six months to a year.<\/p>\n
Even if you can qualify for a mortgage on your own, you\u2019ll still need to make sure that you can afford it at today\u2019s rates. If you want to keep the home and mortgage rates have gone up since the house was purchased, you\u2019ll now be making larger monthly payments on your own.
\nYou\u2019ll also need to pay closing costs, even if you\u2019re refinancing. These are often between 2% and 6% of the loan amount.
\nThere are also expenses beyond the mortgage that you\u2019ll have to take into account. Do you belong to a homeowners association? Will the roof need to be replaced? Will you have to pay for upkeep expenses like snow removal or cleaning gutters? There are tons of expenses that go along with homeownership, and you\u2019ll want to make sure that you can afford to maintain a house on your own.<\/p>\n
If there are children living in the home, it could add another layer of complexity to the situation.
\nYou and your ex (or the courts) could decide that it\u2019s best for the children to remain in the home with the primary custodial parent, and that you should defer the sale of the home until the children reach a certain age. This could mean delaying the full equity payout to the other parent for years, says Glasser.
\nIn the meantime, you\u2019d both continue to own the home. You\u2019ll have to delegate maintenance and expenses, and you should get the arrangement in writing as part of your divorce or separation agreement to avoid future headaches.<\/p>\n
The cost of shelter for the children could also be a child support consideration, so the non-custodial parent may be required to contribute to mortgage expenses.
\nThese mortgage contributions are frequently wrapped into child support payments, says Zangarola. If you pay child support and apply for a new mortgage, lenders will include this in your monthly debt obligations when evaluating your ability to repay the loan.<\/p>\n
If you receive child support and apply for a new mortgage, lenders will also consider the number of years that you\u2019ll be collecting payments. Most lenders will want the payments to continue for at least three years from when you apply. So, if you receive child support for a 17-year-old, a lender may be wary of counting that income towards your ability to repay a 30-year loan.<\/p>\n
As you consider whether you should keep the home, receive a buyout from your ex or sell and split the proceeds, you\u2019ll need to be fully informed of your financial situation before you make a choice. Review your finances, get an appraisal and check current mortgage rates before committing to a path.
\nTaylor Getler writes for NerdWallet. Email: tgetler@nerdwallet.com.
\nThe article January is \u2018Divorce Month\u2019 \u2014 5 Questions to Ask About Your Home originally appeared on NerdWallet.<\/p>\n
Navigating a divorce can be a complex and emotionally challenging process, especially when it comes to deciding what to do with your home. By considering these key questions and taking the time to understand your options, you can make an informed decision that works best for you and your family.<\/p>\n
Q: What is the best way to determine the value of my home during a divorce?
\nA: It\u2019s recommended to have the property appraised to determine a fair value.
\nQ: Can I qualify for a mortgage on my own after a divorce?
\nA: It depends on your individual financial situation and whether you meet lenders\u2019 requirements for a refinance or new mortgage.
\nQ: How do child support payments affect my ability to qualify for a mortgage?
\nA: Lenders will consider child support payments as part of your income, but may have specific requirements for how long you\u2019ve been receiving payments.
\nQ: What expenses should I consider when deciding whether to keep the home?
\nA: You should consider not only the mortgage payments, but also closing costs, homeowners association fees, upkeep expenses, and other costs associated with homeownership.
\nQ: How can I ensure a smooth transition of ownership during a divorce?
\nA: It\u2019s recommended to get any agreements or arrangements in writing as part of your divorce or separation agreement to avoid future headaches.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction to Divorce Month January is such a common time to file for divorce that it\u2019s been long known as \u201cdivorce month\u201d among family lawyers. It marks both the end of the holidays and the start of a new tax year, which can make it simpler to financially separate from your ex. A key part […]<\/p>\n","protected":false},"author":4,"featured_media":24643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-24641","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.sun-sentinel.com\/wp-content\/uploads\/2026\/01\/GettyImages-854089448.jpg?w=1400px&strip=all&w=1400&resize=1400,933&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/24641"}],"collection":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/comments?post=24641"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/24641\/revisions"}],"predecessor-version":[{"id":24644,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/posts\/24641\/revisions\/24644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/media\/24643"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/media?parent=24641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/categories?post=24641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/miami\/wp-json\/wp\/v2\/tags?post=24641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}