BUY OR RENT AFTER A DIVORCE

There are many changes that happen after your divorce, and one of the most significant changes is your living situation. Before the separation, you shared a home with your family and spouse. After the divorce, one household turns into two households. The next step to figure out is whether to rent or buy a home after the divorce.

While both options have their perks, there are several factors you need to look at before you make that decision. First, you have to understand your single-income budget. You are solely in charge of your finances and have to figure out what you have to spend on housing either for rent or for a mortgage. Another thing to consider is how much equity you have from the sale of the home and what you have to put down as a down payment. Don’t forget to factor in your closing costs and property transfer tax.

Every situation is unique and your budget should be your primary determining factor in whether you should rent or buy. If you can comfortably afford purchasing a home, this option is great if you want stability and to build equity. If buying a house is not in the budget, renting a home will give you time for the dust to settle and allow you to save more money while figuring out where you want to live.