For many divorcing couples, the biggest asset they have is the family home – and the one around which a couple may be the most emotional.
There are generally three different options for handling the family home when a couple breaks up: Continue to own it together and sell it later, have one spouse buy out the other’s equity or sell it and divide the proceeds. While it may be tempting to dig in your heels and insist on keeping the family home (or, at least, delay the sale for a few years), it may be better – and more empowering – to let it go.
1. You avoid legal and financial complications in the future
Selling the house now is the most straightforward option, and it can make for a quicker, cleaner divorce – with fewer problems in the future. You may have trouble even refinancing the property into your own name, and you likely won’t be able to keep it unless that is possible.
2. You have more financial freedom and flexibility
It’s not cheap to own a home – and you will only have one income to rely upon if there are major repairs or maintenance issues that crop up. Keeping the home could strain your budget to the breaking point and make it hard to afford the post-divorce life you want. Meanwhile, your share of the home’s equity can allow you to pay off debts, invest, create an emergency fund or travel.
3. You get a fresh start and can disconnect emotionally
The longer you’ve lived in the family home, the harder it can be to look around and see reminders of “what was” and “what could have been.” Both the good and bad memories you associate with the home can create strong emotions. Letting it go can make it easier to create a space that’s truly your own, without the emotional baggage of the past.
If you’re approaching a divorce, the wisest thing to do is seek objective guidance as you explore all of the possible options for your future.