How to Avoid Costly Mistakes During

a Divorce

How to Avoid Costly Mistakes During a Divorce

Divorce is rarely easy and comes with many difficult decisions, one of the most important of which is what to do about the house. Once you know how a divorce affects your home, mortgage, and taxes, other more emotional decisions are more accessible. Most people involved in a divorce find it helpful to access some non-emotional, straightforward, specific information and answers in the midst of the heavy emotional and financial turmoil so they can make logical vs. emotional decisions on the basis of neutral, third-party information. For many, the first decision is whether they want to continue living in the house. On the one hand, familiar surroundings may bring comfort and emotional security, but on the other, these same surroundings may evoke unpleasant memories. Is it important to you to minimize change by staying where you are, or would you rather have a fresh start by selling your home and moving to a new place? Each person's answers to those questions will be personal and different, but there will certainly be financial repercussions to the decision process. Can you manage the present house on your new budget? Or is it better to sell and buy? What can you afford? Is refinancing possible? How much house can you buy on your new budget?

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