The family home often becomes a focus when a couple decides that it is time to end the marriage. Should one of the individuals keep the home, or should they sell it? Will the children be better off if they are able to remain in the home, or would a change of scenery be better? While these may appear to be the pertinent questions in the divorce negotiation process in Pennsylvania, there are other, perhaps more important, questions that need to be addressed.
Prior to digging in the heels and insisting on keeping the home, the individual will want to take a careful look at his or her financial picture post divorce. What will the individual’s budget look like? Will there be enough income to cover the expense of keeping the home along with all the other expenses that will need to be paid? In some instances, the simple reality is that it may be a financial struggle for the individual to keep the home. If this is the case, it may be better in the long run to go ahead and sell it.
Another financial concern that will need to be addressed is the tax implications related to the sale of the home or the transfer of financial assets. Depending on the sale price of the home and the structure of the divorce agreement, the individual may be liable for capital gains taxes. Additionally, depending on the way some financial assets are transferred, taxes and penalty fees may be levied.
While, on the surface, it may appear that keeping the family home is a good idea for the Pennsylvania resident, this may not be a prudent financial decision. This, along with a number of other items, is just one of the many financial concerns that the individual will want to review prior to finalizing the divorce agreement. Experienced guidance can help the individual in determining the best way to proceed.
