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Retirement benefits for keeping the home in a divorce

Many Maryland couples who are considering divorce or going through the process might be surprised to hear financial experts recommend that it is best to get rid of the family home. For many people, the family home has strong emotional ties that are hard to break. According to financial experts, the home might be a burden at the beginning of life after divorce, particularly if the owner is struggling to make the mortgage payments.

However, a study from the Center for Retirement Research has found a contradiction when it comes to the value of that family home. The study found that divorced women who kept the family home actually kept a very valuable asset that could positively impact their financial comfort in retirement. While most divorced people are actually at a higher risk for not having enough financial assets to last through retirement, women who remained single after the end of their marriage seemed in a better financial position during retirement than other divorced persons. The difference, the report suggests, might be the ownership of that family home.

Keeping the family home often means making very big financial sacrifices when a person divorces. It might mean cutting out other things to make mortgage payments. However, over time, these payments do decrease and the house, generally, gains value. When retirement arrives, that family home, with its equity, becomes an important asset for financial security. This is because the house can be lived in while still remaining a large financial asset. As well, if the person chooses to sell the house and downsize or uses the equity that has built, the house then becomes a financial cushion during the retirement years.

Residents who are planning on getting divorced might speak to a lawyer with family law experience who can explain the laws related to all aspects of the end of a marriage. A lawyer can also provide representation in negotiations and in court.

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