While it might be tempting to think about the emotional aspects of the situation, that may lead you to make a decision that’s not in your best interests over the long term. These are a few of the logical factors to consider if you’re thinking about keeping the marital home.
Evaluating whether you can afford the ongoing costs of the marital home is crucial. This includes mortgage payments, property taxes, insurance, maintenance and utilities.
Your financial situation may change significantly after the divorce. It's important to create a detailed budget to determine whether keeping the home is financially sustainable in the long term.
If you have children, consider how keeping the marital home will affect them. Staying in the same house may provide a sense of continuity and stability. It's essential to evaluate whether you can maintain a nurturing and financially stable environment in the home.
The current real estate market conditions should significantly influence your decision. If the market is favorable, selling the home might offer financial benefits that could support a fresh start. If the market is down, it might make more sense to hold onto the property until its value increases.
The marital home is only one asset to consider when you’re handling property division. You have to balance all the assets and debts that were acquired in the marriage. This can be challenging, so seeking guidance from someone familiar with your situation may be beneficial.
]]>But if you do this, your adult child could theoretically use their $250,000 for anything that they want. You may be concerned that they won’t use it in a way you would approve of. Maybe they have habits or lifestyle decisions that you don’t agree with. Perhaps you’re just worried that they will spend it frivolously. Is there any way to instruct them on how to use the money?
You can leave instructions with your estate plan if you want, but your beneficiaries wouldn’t be legally obligated to follow them.
If you want to actually change how they use the money, you can put it in a trust. You can then instruct that the trust can only pay out for certain reasons. For instance, you could say that the beneficiary is allowed to make withdrawals to pay for college tuition, but nothing else. You could expressly state that the money should be used to buy a home or start a business.
When you use a trust, you do have control over how the money is used in the future – and you choose a trustee to ensure that it happens.
Trusts are just one of the estate planning tools that you may want to consider at this time. Be sure you understand exactly what options you have.
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