--- title: Keeping the Marital Home? Interest Rates Aren’t the Only Challenge description: While rising interest rates are a major consideration in keeping the home in a divorce, they are not the only financial hurdle. Here's what else to consider. image: https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-3eyRS4-1536x1024.jpeg --- ## A.M. 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Interest Rates Aren’t the Only Challenge June 03, 2024 3 minutes to read Divorce is a challenging process, and one of the most significant decisions couples face is whether to keep the marital home. While rising interest rates are a major consideration, they are not the only financial hurdle. Here are some critical points to consider if you’re contemplating [keeping the marital home](https://amf-divorce.com/our-blog/home-in-divorce) in the wake of a divorce. ## Skyrocketing Real Estate Assessments [In recent years](https://amf-divorce.com/our-blog/current-economy-housing-prices), real estate assessments in Colorado (and nationwide) have surged, leading to increased property values and therefore property taxes. If you plan to keep the marital home, be prepared for [higher mortgage payments](https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons) due to these increased assessments. This can significantly impact your monthly budget. ## Rising Homeowner’s insurance costs Homeowners insurance premiums have also seen a significant rise, keeping pace with higher home values and increased labor and construction costs for repairs. Evaluate whether your budget can accommodate these rising costs, as they are necessary for protecting your investment. ## After-Tax Mortgage Costs When weighing the decision on whether to keep or sell the marital home or not, work with a financial professional to understand the after-tax cost of your mortgage. Consider the [capital gains taxes](https://amf-divorce.com/our-blog/converting-rental-property-to-a-primary-residence-property-division-in-divorce-part-4) associated with selling the home, which could affect your long-term financial planning. While you’d be left with higher interest rates if you have to refinance the marital home into your own name, those might be partially offset by tax deductions on mortgage interest. A tax advisor can help you understand these tradeoffs fully. ## The Need for Bigger Budgets Given higher interest rates, taxes, insurance, and the financial strain of divorce, you must have a substantial [margin in your budget](https://amf-divorce.com/our-blog/four-sources-to-consider-when-restructuring-your-income-post-divorce) to consider keeping your marital home. Affordability on a single income is a key factor in this decision, as your payments might not be sustainable alone in this environment of higher property values. Therefore, [future budget planning](https://amf-divorce.com/our-blog/navigating-financial-transitions-approaches-for-a-smooth-transition) is essential. Understanding your goals and priorities now will help you advocate for divorce agreements that meet your future needs. Planning allows you to make informed decisions and avoid potential financial pitfalls. Evaluate whether [maintaining the house](https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy) aligns with your [financial and retirement goals](https://amf-divorce.com/our-blog/establishing-goals-and-priorities-for-your-divorce-before-it-starts). Sometimes, selling the home and opting for more liquid assets that appreciate faster might be a [better financial strategy](https://amf-divorce.com/our-blog/how-to-divide-non-retirement-investments-in-your-divorce). It’s also important to [budget for future](https://amf-divorce.com/our-blog/post-divorce-budget-planning-dont-overlook-these-8-items) increases in taxes and insurance. Leave enough money in your savings account to cover home maintenance and unexpected repairs. These factors can prevent financial strain down the line. If you do want to stay in the marital home and you are over the age of 62, consider a Home Equity Conversion Mortgage (formally known as reverse mortgage). This could help keep you in your home or can even help you purchase a new home, either with no mortgage (principal & interest) payments.  Lastly, while financial factors are paramount, it’s also important to consider the emotional and practical benefits of staying in the marital home. Moving can be stressful and disruptive, especially for children. Remaining in the same school district and community can provide much-needed stability during a tumultuous time, helping everyone adjust better to the changes brought by divorce.  Deciding whether to keep the marital home involves weighing multiple financial, practical, and emotional factors. It’s a complex decision that requires careful consideration and planning. [Consulting with a financial planner](https://amf-divorce.com/contact-us) can help you navigate these challenges and make the best decision for your future. - - - - - [mailto:?subject='https://amf-divorce.com/our-blog/keeping-the-marital-home-interest-rates-arent-the-only-challenge'](mailto:?subject='https://amf-divorce.com/our-blog/keeping-the-marital-home-interest-rates-arent-the-only-challenge') [Real Estate](https://amf-divorce.com/our-blog/tag/real-estate), [Property](https://amf-divorce.com/our-blog/tag/property), [Home](https://amf-divorce.com/our-blog/tag/home) ### Related Posts ## [Options to Handle Rental Properties in a Divorce](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) While there is so much to sort through in a divorce, splitting up rental properties can add... [CONTINUE READING](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) ## [College Planning Concepts: 3 Things to Be Aware of When Divorcing](https://amf-divorce.com/our-blog/college-planning-concepts-3-things-to-be-aware-of-when-divorcing) Divorce is a life-altering event that affects not only your family dynamics but also your financial... [CONTINUE READING](https://amf-divorce.com/our-blog/college-planning-concepts-3-things-to-be-aware-of-when-divorcing) ## [Refinancing Considerations with Higher Interest Rates in Divorce: The Pros and Cons](https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons) Divorce is undoubtedly a challenging process, and when combined with financial decisions like... [CONTINUE READING](https://amf-divorce.com/our-blog/refinancing-considerations-with-higher-interest-rates-in-divorce-the-pros-and-cons) ### Posts by Tag - [Divorce (59)](https://amf-divorce.com/our-blog/tag/divorce) - [Finances (39)](https://amf-divorce.com/our-blog/tag/finances) - [Divorce Budgeting (33)](https://amf-divorce.com/our-blog/tag/divorce-budgeting) - [Planning (33)](https://amf-divorce.com/our-blog/tag/planning) - [Financial Planning (28)](https://amf-divorce.com/our-blog/tag/financial-planning) - [Budgeting (23)](https://amf-divorce.com/our-blog/tag/budgeting) - [Taxes (20)](https://amf-divorce.com/our-blog/tag/taxes) - [Assets (10)](https://amf-divorce.com/our-blog/tag/assets) - [Retirement Accounts (10)](https://amf-divorce.com/our-blog/tag/retirement-accounts) - [Divorce Options and Methods (9)](https://amf-divorce.com/our-blog/tag/divorce-options-and-methods) - [Maintenance (9)](https://amf-divorce.com/our-blog/tag/maintenance) - [Child Support (8)](https://amf-divorce.com/our-blog/tag/child-support) - [Investments (8)](https://amf-divorce.com/our-blog/tag/investments) - [Retirement (8)](https://amf-divorce.com/our-blog/tag/retirement) - [Property (7)](https://amf-divorce.com/our-blog/tag/property) - [Real Estate (7)](https://amf-divorce.com/our-blog/tag/real-estate) - [Spousal Support (7)](https://amf-divorce.com/our-blog/tag/spousal-support) - [Emotions (6)](https://amf-divorce.com/our-blog/tag/emotions) - [Family (6)](https://amf-divorce.com/our-blog/tag/family) - [Mediation (5)](https://amf-divorce.com/our-blog/tag/mediation) - [Property Division (5)](https://amf-divorce.com/our-blog/tag/property-division) - [Separation (4)](https://amf-divorce.com/our-blog/tag/separation) - [Co-Parenting (3)](https://amf-divorce.com/our-blog/tag/co-parenting) - [Coaching (3)](https://amf-divorce.com/our-blog/tag/coaching) - [Court (3)](https://amf-divorce.com/our-blog/tag/court) - [Estate Planning (3)](https://amf-divorce.com/our-blog/tag/estate-planning) - [Kids (3)](https://amf-divorce.com/our-blog/tag/kids) - [Retirement Planning (3)](https://amf-divorce.com/our-blog/tag/retirement-planning) - [Tips (3)](https://amf-divorce.com/our-blog/tag/tips) - [Counseling (2)](https://amf-divorce.com/our-blog/tag/counseling) - [Home (2)](https://amf-divorce.com/our-blog/tag/home) - [Interest Rates (2)](https://amf-divorce.com/our-blog/tag/interest-rates) - [Lawyer (2)](https://amf-divorce.com/our-blog/tag/lawyer) - [Mediator (2)](https://amf-divorce.com/our-blog/tag/mediator) - [CFI (1)](https://amf-divorce.com/our-blog/tag/cfi) - [College (1)](https://amf-divorce.com/our-blog/tag/college) - [Do It Yourself (1)](https://amf-divorce.com/our-blog/tag/do-it-yourself) - [Gifts (1)](https://amf-divorce.com/our-blog/tag/gifts) - [Healthcare (1)](https://amf-divorce.com/our-blog/tag/healthcare) - [Inflation (1)](https://amf-divorce.com/our-blog/tag/inflation) - [Insurance (1)](https://amf-divorce.com/our-blog/tag/insurance) - [Litigation (1)](https://amf-divorce.com/our-blog/tag/litigation) - [PRE (1)](https://amf-divorce.com/our-blog/tag/pre) - [Remarriage (1)](https://amf-divorce.com/our-blog/tag/remarriage) - [Stock (1)](https://amf-divorce.com/our-blog/tag/stock) - [Stock Market (1)](https://amf-divorce.com/our-blog/tag/stock-market) - [Transfers (1)](https://amf-divorce.com/our-blog/tag/transfers) - [Travel (1)](https://amf-divorce.com/our-blog/tag/travel) See all ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "2024-06-03T19:59:26.932Z", "datePublished" : "2024-06-03T19:48:48.000Z", "headline" : "Keeping the Marital Home? Interest Rates Aren’t the Only Challenge", "image" : [ "https://amf-divorce.com/hubfs/Imported_Blog_Media/qtq80-3eyRS4-1536x1024.jpeg" ], "mainEntityOfPage" : { "@id" : "https://amf-divorce.com/our-blog/keeping-the-marital-home-interest-rates-arent-the-only-challenge", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://amf-divorce.com/hubfs/amf-divorce-logo.jpg" } } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is a challenging process, and one of the most significant decisions couples face is whether to keep the marital home. While rising interest rates are a major consideration, they are not the only financial hurdle. Here are some critical points to consider if you’re contemplating keeping the marital home in the wake of a divorce. Skyrocketing Real Estate Assessments In recent years, real estate assessments in Colorado (and nationwide) have surged, leading to increased property values and therefore property taxes. If you plan to keep the marital home, be prepared for higher mortgage payments due to these increased assessments. This can significantly impact your monthly budget. Rising Homeowner’s insurance costs Homeowners insurance premiums have also seen a significant rise, keeping pace with higher home values and increased labor and construction costs for repairs. Evaluate whether your budget can accommodate these rising costs, as they are necessary for protecting your investment. After-Tax Mortgage Costs When weighing the decision on whether to keep or sell the marital home or not, work with a financial professional to understand the after-tax cost of your mortgage. Consider the capital gains taxes associated with selling the home, which could affect your long-term financial planning. While you’d be left with higher interest rates if you have to refinance the marital home into your own name, those might be partially offset by tax deductions on mortgage interest. A tax advisor can help you understand these tradeoffs fully. The Need for Bigger Budgets Given higher interest rates, taxes, insurance, and the financial strain of divorce, you must have a substantial margin in your budget to consider keeping your marital home. Affordability on a single income is a key factor in this decision, as your payments might not be sustainable alone in this environment of higher property values. Therefore, future budget planning is essential. Understanding your goals and priorities now will help you advocate for divorce agreements that meet your future needs. Planning allows you to make informed decisions and avoid potential financial pitfalls. Evaluate whether maintaining the house aligns with your financial and retirement goals. Sometimes, selling the home and opting for more liquid assets that appreciate faster might be a better financial strategy. It’s also important to budget for future increases in taxes and insurance. Leave enough money in your savings account to cover home maintenance and unexpected repairs. These factors can prevent financial strain down the line. If you do want to stay in the marital home and you are over the age of 62, consider a Home Equity Conversion Mortgage (formally known as reverse mortgage). This could help keep you in your home or can even help you purchase a new home, either with no mortgage (principal & interest) payments. Lastly, while financial factors are paramount, it’s also important to consider the emotional and practical benefits of staying in the marital home. Moving can be stressful and disruptive, especially for children. Remaining in the same school district and community can provide much-needed stability during a tumultuous time, helping everyone adjust better to the changes brought by divorce. Deciding whether to keep the marital home involves weighing multiple financial, practical, and emotional factors. It’s a complex decision that requires careful consideration and planning. Consulting with a financial planner can help you navigate these challenges and make the best decision for your future.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "03/06/2024", "datePublished" : "03/06/2024", "headline" : "Keeping the Marital Home? 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