Can I Afford to Keep the House? A Financial Checklist for Divorcing Homeowners

One of the biggest questions in any divorce is what happens to the house.

For many, it’s more than just a piece of property. It’s the place where your kids grew up. The space you made your own. A symbol of security when everything else is shifting. But the emotional weight of the home can cloud the very real financial implications of keeping it.

This guide is especially helpful if you're:

• You’re unsure if you can keep the house on one income

• You're considering a buy-out from your spouse

• You want to avoid costly mistakes tied to refinancing or post-divorce debt

Before making any decisions, here’s what to consider:

1. Know Your Mortgage and Ownership Structure

Start with the facts:

• What’s your current monthly mortgage payment?

• Is your mortgage a fixed or adjustable rate?

• Are you and your spouse both on the title and loan?

• Will the property need to be refinanced in your name?

Refinancing is often required to remove one party from the loan—and this comes with qualification and cost considerations.

2. Understand Your Post-Divorce Income

Ask yourself:

• What is your income post-divorce (job income + support)?

• How long will support payments last?

• Will you meet lender debt-to-income (DTI) requirements to qualify for refinancing?

Even if you receive spousal or child support, lenders require documentation and timeframes (often 6+ months of receipt or 3 years of continuance).

3. Total Cost of Ownership Matters

Don’t stop at the mortgage payment:

• Can you cover property taxes, insurance, maintenance, and utilities?

• What will emergency repairs cost you?

• Do you have a budget for landscaping, pest control, or HOA dues?

Owning a home post-divorce requires real cash flow. Protect yourself by evaluating the full picture.

4. Explore Refinance and Equity Buy-Out Options

If you're awarded the home and need to keep it:

• Can you refinance into a new loan solely in your name?

• Does your settlement include an equity buy-out?

• Will you need additional funds to pay off your spouse or access equity?

Remember: equity buy-outs must be properly structured and identified in your settlement to qualify under favorable mortgage guidelines.

5. Think Long-Term, Not Just Short-Term

Keeping the home can feel like a win, but:

• Will you have enough for retirement or savings?

• Does the home fit your new lifestyle and income?

• Are there better alternatives that offer more flexibility and security?

Run the numbers, get the facts, and don’t make this decision alone.

Final Thoughts

Keeping the home is an emotional and financial decision—one that should be grounded in facts, not fear.

With the right mortgage strategy and financial clarity, some clients do keep the home and thrive. Others decide to sell, rent, or relocate and build something new. What matters most is that the decision supports your future.

Need help figuring out what that looks like? That’s exactly what this kind of planning is for.