If you’re getting a divorce, let your soon-to-be ex keep the house
When going through a divorce, the last thing anyone thinks about is retirement. Mates are put in a precarious position because any joint retirement accounts or accounts associated with their ex’s job could potentially be lost. What can spouses do during the divorce to make sure they will have money for retirement?
Can You Afford the House?
Divorce puts both mates’ life in a state of upheaval, so it makes sense that they would want to protect the place they live. Especially when children are involved, staying in the family home can maintain a sense of stability.
Nevertheless, the mate who keeps the home is responsible for maintaining the home. Spouses must consider whether they have enough income to make mortgage payments, pay taxes, and cause costly repairs to the house.
Protect Your Retirement
If you “win” a home that you can’t maintain, you’ll either lose it to foreclosure, or it will fall into disrepair. A mate in this situation receives no benefit from the home.
Spouses in a divorce should consider letting their ex stay in the home and focusing on legally getting other marital assets that can help them survive in the present and eventually retire comfortably.
Appreciable Assets Will Sustain Your Wealth
In the divorce settlement, a spouse should focus on acquiring an asset that will either sustain or increase its worth over time. Investments and stock shares are perfect assets that can serve as a source of retirement income.
Cash could serve this purpose, but it will only help during retirement if it’s not spent beforehand. It’s beneficial to put some money in a CD to remove temptation. A house could be the perfect asset to fund a divorced person’s retirement, but that is not the case in every situation.