Normally in a divorce, the couple that's divorcing needs to make the decision about who's going to maintain the house. They should work this out between their attorneys, or else the courts will deal with it. In any case, a final decision will be made about the property. One of the main goals of divorce is to acquire as much ownership of assets as you can. Conversely, you want to have as little ownership of debts as possible. In most divorce cases, you wind up with both. You want to ensure that you do not end up with more debts than assets after the divorce is final. In a divorce, all your property and debt is common property and common debt, save a prenuptial agreement. So, a divorce proceeding establishes who gets what, and how much. In most cases, the primary bread winner usually winds up with most of the debt because that is the person who is most able to pay it.
Since your home mortgage is often your largest single debt; and if you are the breadwinner, you will likely want to keep your house. If your ex-spouse wins domicile rights and you cannot live in your house, but must continue to pay for it, you should push to have it sold. Property value appreciates over the long term. You will have no chance of recovering alimony payments toward an asset you no longer use or own. And, the court will not award you any future value based on estimated appreciation over the long term. So, do not relinquish the house to your ex-spouse without a fight.
Now, if you are able to stay in your house, there are a few things you should consider. Can you afford to make the mortgage payments and property tax installments without your spouse's income? You ought to work up a draft budget based on your attorney's recommendation about how the divorce will likely be settled.
Then, ask yourself if you really need a house to live in. If you have no need for a house, it might be a good idea to plan for putting the house on the market once the divorce is final. In order to get full value for your home, you probably will need to invest some money in getting it market ready. So, plan ahead. Remember, selling the house as part of a divorce decree will be a quick deal; and you must remember that you not only have to negotiate with a potential buyer, but you must also have agreement with your ex-spouse about sales terms. And, you will not likely get full market value for a house you want to sell as quickly as possible. So, hold onto your house until after the divorce is final. It is a good investment.
In the event you are forced to leave the house, do everything you can to avoid being legally responsible for the mortgage payments. If your ex-spouse doesn't pay the mortgage, the bank will come looking for you and you will be identified as a bad credit risk to the credit reporting bureaus. Get your name off the loan of the house as part of the divorce decree. Remember, you do not want a long term debt obligation for an asset you cannot use.
