Divorce can be a daunting prospect, especially when financial stability is at the forefront of a 30-ish parent’s mind. If you are part of a dual-income household in Arkansas and find yourself contemplating the end of your marriage, you should understand the financial implications, particularly about the marital home.
It is understandable for parents to want to remain in their home after divorce, but it is not always possible.
Considering your children’s well-being
Staying in the family home after divorce can offer children a sense of stability. Familiar surroundings provide comfort during a challenging time, helping them adjust to the changes. The continuity of their living space, school and neighborhood can mitigate the emotional impact of divorce, offering a stable foundation for their well-being and development.
Determining financial standing
Take stock of your joint financial assets and liabilities. Compile a comprehensive list, including income, debts and expenses. Analyzing these figures will give you a clearer picture of your financial standing as you approach divorce proceedings.
Evaluating home equity
For many couples, the marital home is a significant asset. Calculating its current market value and subtracting outstanding mortgage debt provides the equity. The equity in your home influences the division of assets during divorce.
Consideration of Arkansas laws
Arkansas operates under equitable distribution laws, meaning that the marital property division is fair but not necessarily equal. The court takes various factors into account, such as each spouse’s financial contributions, earning capacity and child custody arrangements.
Budgeting for post-divorce homeownership
Once the divorce is final, maintaining the marital home comes with ongoing financial responsibilities. Budgeting becomes imperative—consider mortgage payments, property taxes, insurance and maintenance costs. Ensuring you can afford these expenses post-divorce provides a smoother transition.
If the financial burden of keeping the marital home proves challenging, exploring alternative solutions is wise. Selling the property and dividing the proceeds may be a viable option, providing both parties with a fresh start. You may find another residence in the same neighborhood and school zone to help reduce the impact of moving for your children.