Keeping the Marital Home: Can You Afford to Stay After Divorce?

For many people, the marital home is more than just property—it’s a place filled with memories and a sense of stability, especially for children. In Georgia, deciding who keeps the marital home often comes down to a combination of legal and financial considerations. Here’s what to know if you’re hoping to keep your home post-divorce.

The first consideration is whether you can afford to keep it. You’ll want to make a list of all expenses necessary to run your household, in the home, after the divorce. Then compare the total cost to what income you will have after the divorce is final.

Even if you can afford the current expenses of the home, if there is equity in the home, you may need to buy out your spouse for their interest in the home. For example, if your home is worth $600,000, and your current mortgage balance is $400,000, you may need to pay your spouse $100,000 in order for you to keep it. If you have enough funds in savings, or another other assets, you may not need to increase the mortgage balance. However, if you don’t have other assets to pay your spouse for their interest, you may have to get a new mortgage for $500,000 in order to pay off the current mortgage and pay your spouse $100,000.

If both of your names are on the mortgage, even if you don’t have to increase the mortgage balance, you may need to refinance to get their name off the loan. If current interest rates are higher than the interest rate of your existing mortgage, your monthly payment will increase. You can check current interest rates and estimate the new monthly mortgage payment by contacting a mortgage broker or playing around with an online mortgage calculator.

Keeping the house may feel like the best option emotionally, but it’s crucial to consider the financial reality. Will you be able to afford mortgage payments, taxes, maintenance, repairs, insurance and other associated costs on your own? High-earning clients may have more flexibility here, but it’s still essential to create a budget that accurately reflects life after divorce. Some advise limiting your housing expenses to 30-40 percent of your income. If the house expense is significantly higher, it may not be feasible.

If one of you keeping the home won’t work, you and your spouse may choose to sell it and divide the proceeds. Generally, selling the home means paying 6-10 percent of the sales price for real estate commissions, required repairs and other costs of selling the home. Are there things a realtor would recommend you do prior to listing your home? Will this include no-cost tasks such as decluttering, cleaning and yardwork you can yourself, or will repairs be more costly such as replacing stained carpet or fixing damaged areas? If the latter, will they be paid for up front or reimbursed from the sale proceeds?

Conclusion

Keeping the marital home after a divorce is often possible, if it is a priority for both spouses, such as when parents want to continue children in the same school district. Working with a family law attorney with decades of experience is crucial. Attorney Julie Ernst can help you consider creative ideas to resolve whatever hurdles you face.