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.