Can I Afford to Keep the House?

Hi Scott,

I am currently going through a separation and want to know if I am in a financial position to keep the house. The mortgage is $506k; the house was bought for $665k 18 months ago and is valued at $730k. I am now a single mother of two children on a full-time wage of $93k. I have job security as I work for the police. I was wanting to buy my ex-husband out, unless you can suggest something else I can do to keep the house.

Emma

Hi Emma,

Most mums naturally want to keep their kids in the family home after the divorce -- but it’s almost always a bad financial decision that puts them under more stress in the long run.

Your income is $5,800 a month -- plus your child support. Even without buying your husband out, you still can’t afford to keep the house. If I were you, I’d sell it and walk away with $100k.Get yourself a nice, quality rental and re-evaluate things in 12 months’ time. You’ll be fine. So will the kids. The main thing they need right now is their mother’s undivided attention, and with $100k in the bank you’ll be free to give it.

Scott