Many women in Minnesota involved in a divorce will be faced with the financial issue of obtaining the marital home in the settlement. A new study presents data that is contrary to traditional advice of financial planners and has reopened the hotly debated issue.
The study finds that divorced women generally have accumulated more assets than their single counterparts. According to the study, the main reason is obtaining the marital home in the divorce process. This asset has permitted many women to have a substantial retirement asset through home equity.
In the face of this new study, financial planners and divorce attorneys point out that many factors are important while making the decision to seek the marital home. First, the financial condition of the wife to be divorced must be analyzed. Her income and other debts must be scrutinized to determine if she is able to afford the mortgage payment, taxes, insurance, maintenance and inevitable repairs associated with home ownership. These factors should be compared with the cost of alternate housing. It must be kept in mind that two incomes were paying the costs of home ownership prior to divorce whereas there will only be one after the divorce.
Second, the home must be looked at as a financial asset and not as a sentimental asset. If it is located in an area of quickly rising home prices, is may make sense to sell soon after divorce to obtain profit. In other cases, if the neighborhood home values have risen steadily over a period of time, it may make financial sense to retain it.
For those going through the emotional roller coaster of a divorce, the advice of their divorce attorney or financial planner may be valuable. Responsible professionals in this area may focus on issuing advice based on the facts before them with the best interests of their clients at the forefront.