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How to Avoid Costly Housing Mistakes in the Midst of a Divorce

Thursday, August 8, 2019   /   by Mario Daniel Sconza

How to Avoid Costly Housing Mistakes in the Midst of a Divorce

Divorce is rarely easy and often means a lot of difficult decisions. One of the most important decisions is what to do about the house.



In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straightforward, specific information and answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional, decisions.


Probably the first decision is whether you want to continue living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?


Only you can answer those questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.


 4 Options


You have 4 basic housing options when in the midst of a divorce:


1. Sell the house now and divide up the proceeds.


2. Buy out your spouse.


3. Have your spouse buy you out.


4. Retain your ownership.


It’s important for you to understand the financial implications of each of these scenarios.


1.        Sell the House Now and Divide Up the Proceeds


Your primary consideration under these circumstances is to maximize your home’s selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original downpayment, and the legislative property laws in your area.


 

2. Buy Out Your Spouse

If you intend to keep the house yourself, you’ll have to determine how you’ll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.



To help you know what questions you should ask and how to arrive at the right answer for your specific situation, a FREE, NO AGENT special report has been prepared by industry experts entitled "Divorce: What You Need to Know About Your House, Your Mortgage and Taxes".


To order a FREE Special Report, visit www.MarioDanielSconza.com or to hear a brief recorded message about how to order your FREE copy of this report call toll-free 1-800-369-9973 and enter 1009. You can call any time, 24 hours a day, 7 days a week.



Receive your free special report NOW to find out how to make this part of your current situation less stressful.


 


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eXp Realty of Canada
Mario Daniel Sconza
4711 Yonge St 10th Floor
Toronto, ON M2N6K8
416-230-3476

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®.
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2020 Last Updated November 30, 2020
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