To keep or not to keep the house, that is the question

Divorce is defined as a legal dissolution of a marriage, but it obviously entails so much more than what can be defined in a sentence. For couples divorcing in Las Vegas, the process brings with it the necessity to think about and protect their financial future.

Nevada is a community property state. In general, that means that assets and debts obtained during the marriage will be split equitably, which doesn’t necessarily mean 50-50. With different assets carrying varying values, property division can understandably be a complicated process if a fair outcome is to be reached.

A recent Huffington Post article written by a legal professional discusses one of the most contentious assets in a divorce: the house. Although the family home is often filled with memories and a source of strong emotions, it is important to consider whether an individual can actually afford to keep it.

Many questions need to be considered before an individual decides to keep the family home. For example, can that person refinance the home into their name? In other words, will a bank lend that person money? If they are relying mostly on child support and alimony, the answer may be no.

Other things to consider are the amount of debt left on the house, the size of the house and how much the monthly mortgage payments will be. All of these topics should be discussed with a legal professional in order to reach the best outcome. Although keeping a house may be psychologically important to an individual, it may also be financially devastating.

Source: Huffington Post, “Keeping the House After Divorce,” Connell B. Kathleen, Feb. 22, 2013