When a woman gets divorced, her income falls by about 20 percent on average. When a man gets divorced, his income goes up by about 33 percent on average. However, there are steps that women in New Jersey and around the country can take to help secure their retirement after their marriage comes to an end. In many case, it may not be best to keep a marital home because of the overall cost of doing so.
In addition to making mortgage payments, homeowners need to account for the cost of maintenance, property taxes and homeowners insurance policies. When it comes time to sell the home, it may be necessary to pay capital gains taxes as well as the cost of staging it for buyers. Keeping a home could also result in an individual passing on another asset that could be just as or more valuable than the home in the long-term.
Those who can’t get a mortgage in their own name may be forced to sell it shortly after the divorce. Of course, there is nothing wrong with owning a house after a divorce. The question is whether an individual should stay in the marital home or get something smaller and more affordable. Doing so could make it easier to hang onto assets designed to help a person during retirement.
During a divorce, the property division process may be a contentious one. However, individuals may make the process easier by remaining flexible and negotiating as much as possible. In some cases, working with a mediator can help a former couple agree on how to divide property such as a home or retirement account. An attorney can represent an individual regardless of how it is resolved.