Divorce brings many financial questions, and one common concern is whether you can afford to keep living in your home. You want to make sure your budget supports your housing situation without adding extra stress during this time. You may find it helpful to break down what you need to consider.
Assess your income and expenses
Start by looking closely at your income after divorce. You might have less money coming in if you’re supporting two households or paying alimony. Then, list all your housing costs—mortgage payments, property taxes, insurance, utilities, and maintenance. Don’t forget any shared expenses you might have split before.
Consider refinancing or selling options
If your current mortgage is too high, see if refinancing is an option to lower payments or adjust terms. Sometimes one spouse buys out the other’s share of the house, but that depends on your financial situation. If keeping the house isn’t affordable, selling might free up funds to help both parties move forward.
Plan for future financial changes
Divorce can affect your finances in unexpected ways, such as changes in employment or additional costs for child support. It’s wise to create a budget that accounts for these potential shifts to avoid surprises. Staying in the house is possible if you plan carefully and keep your expenses manageable.
Knowing your housing budget helps your choices
Ultimately, you want to live within your means and maintain stability. If staying in the house fits your budget without jeopardizing other financial goals, it may be a good choice. If not, consider alternatives that support your well-being and financial health.