Costs of Divorce – Part 2, Real Estate and the Cost of Living

Costs of Divorce – Part 2, Real Estate and the Cost of Living

Costs of Divorce – Part 2, Real Estate and the Cost of Living

We’ve been discussing the various costs of Divorce, so we have to bring up the topic of the various costs involved with Real Estate.  Many divorces require figuring out what to do with the house, and in most divorces, the house is the most valuable asset to divide.

If you have real estate, there is usually cost involved in handling it.  If you decide to sell the property, you’ll have cost in broker commissions, transfer taxes, and preparing the house for sale.  These aren’t insignificant costs – we usually tell clients to budget about 8% of the value of the house for these costs.  If you want to stay in the house, but want to sell the house later, you will bear these costs by yourself.  If you are thinking about staying in the house but selling it within a few years, consider this cost in your decision. Sometimes it makes sense to sell the house as a married couple, so you can share those costs together.

If you’re buying a new property, there are obvious costs in the purchase price, closing costs, moving costs, appliances, home improvements and decoration the new house to make it “yours”.

In many cases, one spouse keeps the house, but the house and mortgage is in joint name.  If you’re keeping the family home, there is likely to be legal cost to transfer the deed from joint name to single name, and if refinancing is required to provide a cash-out to your spouse, there likely will be closing costs to that transaction.  We typically recommend hiring a competent real estate attorney to help with the deed transfer and filing the legal documents that are necessary.

And there is a bit of truth to the old saying “two can live as cheaply as one”.  It’s definitely more expensive to have two homes, even if one is a temporary apartment or rental home.  There are moving costs, deposits, down payments, new homeowners insurance, loss of multi-vehicle discounts in car insurance – all of these costs should be considered when getting divorced.

Check back for future blogs about the costs of divorce. For learn more, cBridge will be holding a panel discussion on how to have a Cost Effective Divorce on April 25, 2017 at 7pm at the Doylestown Library, 150 S. Pine St, Doylestown PA 18901.  For more information see http://www.cbridgesupport.com.

cBridge

cBridge support is an organization of professionals dedicated to helping you through your Doylestown, Bucks County and Montgomery County divorce.

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