Marriage tends to improve people’s standards of living. When two people combine their resources and share their efforts, they can maintain a nicer home while outsourcing fewer tasks to professionals. Two incomes can make it much easier to afford the mortgage for a comfortable home in a desirable neighborhood.
Unfortunately, relying on two incomes to secure a mortgage can lead people to worry about their options after divorce. Is it possible for those who have acquired mortgages during marriage to afford their homes without a spouse’s income after divorce?
Many factors influence affordability
Income levels, credit scores and even the current lending market influence an individual’s ability to afford a mortgage. Lenders assisting with a divorce-related mortgage refinancing may allow people to include child support and alimony or spousal support with their income, improving their chances of qualifying for a mortgage.
The use of home equity to compensate a spouse can increase the principal balance on the loan, thereby driving up monthly payments and making it harder to qualify. Some people may be able to afford the home but may struggle to maintain it on their own.
They may not be in a position to afford professional services to maintain the home or repair any issues that arise while they live there alone. Many people preparing for divorce have to ask themselves difficult questions and think carefully about their circumstances while setting goals.
Retaining a home is a common objective during divorce, but not everyone can afford a home on their own. Even those who can afford a home may need to downsize. Discussing personal priorities and finances at length can help spouses establish reasonable and achievable divorce goals.