“My spouse and I are about to divorce. We own a home and I’d like to keep it but may need to refinance in order to do so; how can I go about deciding whether to keep the matrimonial home?”
Firstly, if there is a mortgage on your home, then you almost always have to re-qualify for a mortgage or home equity line of credit on your own. This present debt may grow even larger if you have to pay your ex a share of the existing equity in your home to even out assets. Once you have qualified for a mortgage or line of credit, will you be able to afford the monthly financial obligation to service this debt. You may also have present or future upkeep costs, utility costs, property taxes, etc. These financial responsibilities must be thoroughly considered so that your children don’t have a stressed out parent. Always confirm whether you can qualify and afford the monthly cost before signing your legal agreement.
Beyond the financial considerations, you must take into account as to whether you will have the time and energy for upkeep on your home. You will now have the sole responsibility for all upkeep, when duties may have been shared before. The house must be cleaned and maintained, the grass cut, etc. Before insisting that you must keep the house for the children, give serious thought to all of the ramifications.
Sharon Numerow is a Certified Divorce Financial Analyst at Alberta Divorce Finances in Calgary. She can be reached at (403)703-7176 or thru email. View the firm profile here and firm website here www.albertadivorcefinances.ca.