provided by Patricia Lalonde
During separation, this is a feeling that often arises. It comes from a strong desire to retain some sense of security and familiarity during a time of major upheaval.
Does it make sense to keep the house? Does that spouse recognize the sacrifices they might need to make in order to keep the house? These are the questions.
To find the answer to these questions let’s look at the facts. What is the actual annual cost of living in the house? Compare that to the realistic future income and the decision becomes clearer. Either you can afford it or you can’t.
However, it isn’t always that straight forward. Sometimes a person wants to give up retirement savings in order to keep the house. Does that make sense? Other factors come into play such as taxation issues, income levels, age of the spouse and the children as well as attachments to the location.
Thinking outside the box about what life could look like in another building. Think about what it would feel like to have some financial freedom if you didn’t have the high expenses of maintaining that building. Think of the house as “bricks and mortar.” Remember that you are the soul of your home wherever that home might be. Then the calculations become clear and your solutions become easy.
All the very best in your transition
Patricia Lalonde, CFP