If you’re divorcing later in life, you’re likely focused on coming out of your divorce with enough financial resources to retire comfortably. Texas community property law, which typically involves spouses splitting assets acquired during a marriage equally, can help with that – especially if you have a spouse who’s trying to get more than their fair share.
Divorce in your 60s or later can give you the opportunity to liquidate some assets you no longer want or need to build up your retirement savings. Your largest single asset may be your home.
What’s the smartest financial choice for you?
While some couples fight over who gets to stay in their home, it’s important to consider why it may be a wise financial decision to let it go. Whether that involves your soon-to-be ex buying out your share and staying in it or selling it and splitting the proceeds, getting out from under the financial burden of a home that may be far too large for you can mean you have a larger financial cushion as you enter this new phase of your life.
One certified divorce financial analyst says, “If a home is going to be more than 70 percent of your net worth, you should consider whether you can really afford it.” Further, even if there’s no longer a mortgage on it, keeping the home means paying insurance premiums, property taxes, maintenance costs, utilities and more on your own.
If you sell your portion of the home’s value to your spouse, it’s crucial to make sure that the fair market value of it has been accurately assessed. It’s also critical that your name comes off the title and certainly any mortgage you have on it.
If you think you want to keep the home rather than moving into someplace smaller, you certainly have every right to seek that outcome. However, it’s important that you approach the decision as a financial one rather than an emotional one. The president of the American Academy of Matrimonial Lawyers says, “When couples fight about their stuff, they’re fighting more about the memories attached to the stuff than about its market value.”
In addition to having experienced legal guidance, consulting with your own financial and tax advisors can help you stay focused on the long-term financial ramifications of your decisions and seeking the best possible settlement.
