When you get divorced, the idea of keeping the marital home can provide genuine stability during upheaval. That emotional pull makes sense, and for some people, keeping the house can be the right choice. The key is making that decision with your eyes wide open to what it actually requires.
If you are thinking about trying to keep your marital home in your divorce, it’s crucial to make informed choices. For instance, there are some significant costs that deserve careful consideration before you commit.
Tax bills
Property taxes in Rhode Island are not insignificant. In fact, we had the 10th highest rate per capita in the country in 2023, and tax increases are accelerating. Unlike a mortgage payment that stays relatively stable, property taxes tend to increase over time. When you were splitting expenses with a spouse, this was just part of the household budget. On a single income, you need to ensure you have room for these non-negotiable costs while still maintaining your quality of life.
Repair and maintenance costs
The furnace doesn’t know you’re divorced. Neither does the roof when it starts leaking. Homeownership comes with maintenance costs of about 1-2% of your home’s value each year, on average. Consider what that means:
- A $300,000 home needs $3,000-$6,000 annually for upkeep
- Emergency repairs don’t wait for your next paycheck
- Deferred maintenance only gets more expensive
If you can build these costs into your post-divorce budget and still have breathing room, the house might work beautifully for you.
Refinancing often means qualifying alone
Keeping the home isn’t as easy as signing a divorce agreement. If your spouse is on the mortgage, a divorce judgment and deed can transfer ownership, but they usually won’t remove your spouse from the loan.
To take your spouse off the mortgage, you typically must refinance in your name alone or qualify for a lender-approved assumption/release (if available). That means qualifying for the full loan amount based solely on your income and credit. Even if you can comfortably afford the payment, you might not meet lending requirements.
Keeping your house after divorce can be the right decision when the numbers truly work. Run them honestly, factor in all the costs and trust yourself to choose the option that fits your new life.
