• Home
  • Divorce Mediation
  • Divorce Consulting Expert
  • Coaching
    ▲
    • Co-Parenting Coaching
  • All Services
    ▲
    • Collaborative Divorce
    • Divorce Mediation
    • Divorce Consulting Expert
    • Divorce Support Groups For Men
    • Divorce Support Groups For Women
    • Divorce Coaching
    • Co-Parenting Coaching
    • Post-Divorce Transition Support
    • For Attorneys
      ▲
      • Business Valuation Services
      • Forensic Accounting
      • Collaborative Divorce
      • Denise French
      • Shelli Dodson
  • Blog
  • About
  • Work With Us
    ▲
    • Contact
    • Schedule An Appointment
    • Pay Now
  • Post Divorce Transition Support
    ▲
    • Men’s Support Group
    • Women’s Support Group
    • Community Services
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

281-505-8177
CONTACT US

SCHEDULE A
FREE CONSULTATION

Contact Us: 281-505-8177

Divorce Strategies Group

Divorce Strategies Group

Denise French

  • Divorce Mediation
  • Divorce Financial Advisor
  • Coaching
    • Divorce Coaching
    • Co-Parenting Coaching
  • All Services
    • Divorce Mediation
    • Divorce Financial Advisor
    • Divorce Support Groups For Men
    • Divorce Support Groups For Women
    • Divorce Coaching
    • Co-Parenting Coaching
    • Post-Divorce Transition Support
    • Collaborative Divorce
    • For Attorneys
      • Business Valuation Services
      • Forensic Accounting
      • Collaborative Divorce
  • Work With Us
    • Contact
    • Schedule An Appointment
    • Pay Now
  • For Attorneys
    • Business Valuation Services
    • Forensic Accounting
    • Denise French
    • Shelli Dodson

Dividing the Marital Home in Divorce

June 28, 2018 By Denise French, CVA, MAFF, CDFA, CRPC Leave a Comment

keep the house in divorce

Divorce has a way of making you feel as though everything you thought you knew about your life and your future is upside down. It is a surreal feeling.  To maintain some sense of normalcy, it is very common to want to stay in the primary home and divide the marital home.  This I especially true of parents with younger children who wish to keep life the same for their kids.  While it is tempting to want to lean on the something familiar like the family home, be aware that it may also be the most costly mistake you can make.

It’s very easy to look at the home from a sentimental view point.  However, we encourage you to try to put on a new set of glasses to view your home.  Try to think from a purely practical standpoint, as if helping a friend.   A house is somewhere to live. And even with today’s sharing economy, unless you are willing to invite strangers into that space, it will not provide any income to support your lifestyle. Furthermore, if you and your spouse lived there for a long period of time, there can be a large chunk of equity trapped in those walls. If you are awarded the home in the divorce, it could be the largest asset in the settlement.

Let’s assume the home has a market value of $400,000 and there is $300,000 in equity. As marital property, half of that equity is yours, but the other half is your spouse’s. So, if you are to keep that home, then a full $300,000 of your settlement will be tied up in that property. That same money could generate over $13,000 a year in income if it were invested conservatively. And don’t forget about the costs of upkeep and maintenance that will increase the amount of income you’ll need just to make ends meet.

You should also make sure that you are aware of the potential tax impacts down the road when you divide the marital home. If you were to sell the house while you are still married, the $300,000 capital gain would fall under the marriage exclusion of up to $500,000 and be tax-free. Once you transfer that home into your own name, if you sell it now with a gain of $300,000, the personal exemption is only $250,000 so you will owe capital gains tax on $50,000 of gain or $7,500 and even more if you’re a high wage earner.

Divorce is difficult, but you also have an opportunity for a fresh start and getting off on the right financial footing is essential to your future. To be certain that you understand all the ramifications of any property settlement you are considering, bring a Certified Divorce Financial Analyst® (CDFA®) into your team to shine the light onto some of these issues. You only have one chance to get your settlement right. Take the time to gather information and make sure you are doing the right thing. It will be the best decision you ever made.

 

Filed Under: Dividing Property

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Posts

  • High Stakes, High Net Worth:
  • Why Choose Mediation Instead of Court?
  • New Year New You: Three Resolutions Worth Making
  • Texas Divorce Mediation
  • Back to School Basics for Busy Co-Parents

Recent Comments

    Archives

    • January 2023
    • December 2022
    • August 2022
    • June 2022
    • May 2022
    • January 2022
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • November 2018
    • August 2018
    • July 2018
    • June 2018
    • April 2018
    • February 2018
    • January 2018

    Categories

    • Alternative Dispute Resolutions
    • Dividing Property
    • Divorce Coaching
    • Divorce Finance
    • Divorce Support
    • Family & Children
    • Mediation
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Footer

    Copyright © 2023 - All Rights Reserved | Web Design by The Crouch Group | Log in