Divorce can be a challenging time, both emotionally and financially. Amidst all the changes, it’s important to understand the options available to help you reach a place of financial peace post-divorce. As you transition into a new chapter of life, here are some key considerations:
How Refinancing Can Provide a Fresh Start*:
Partner Mortgage Removal
A mortgage refinance can remove one party from a jointly owned home, reducing financial obligations.
Equity Payout
A cash-out refinance allows you to tap into home equity and potentially settle your partner’s share of equity.
Debt Consolidation
Did you acquire new debt following the settlement? A refinance may be able to combine existing debts into a single, potentially lower-rate loan.
Loan Term Adjustment
Dependent on the market, you may be able to refinance to a lower mortgage rate or you may consider a refinance to modify the length of your mortgage loan term.
Your Personal Finances Moving Forward
Budgeting
Post-divorce, it’s crucial to reassess your financial situation. Leverage budgeting apps to manage your new income and expenses.
Credit Score
Monitor your credit score and check your credit report for any joint accounts or loans. The credit report will also list any open credit under your name.
Retirement Planning
Following a divorce, consider consulting with a financial advisor to evaluate retirement savings and to realign your retirement goals.
Taxes
Assessing your tax status post-divorce can be complex. A licensed tax consultant can help you navigate changes related to alimony, child support, or asset transfers**.
Our team is committed to providing a support system for you before, during, and after this season of life. If you have any questions or we may assist, please give our team a call today at 757-366-8690.
*If refinancing an existing loan, the total finance charges may be higher over the life of the loan.
**This information is provided for general informational purposes only and should not be construed as tax advice. For personalized advice regarding your tax situation, please consult with a qualified tax professional.