The Real Price of Keeping the House After Divorce
Record-low mortgage rates over the last decade let many families buy larger homes with affordable payments. In a divorce, it’s common for one spouse to want to keep the house—often because the mortgage is attractive. But the mortgage is only part of the bill.
What recent data shows
A national analysis found that in 2024 a median U.S. home valued at $436,291 carries about $18,118 in annual costs beyond the mortgage. In 2020, similar expenses totaled $14,428. For example, in North Carolina, those costs rose 31% from 2020 to 2024.
Costs owners often underestimate
Most people account for property taxes and homeowners insurance, but several line items can climb faster than expected:
Repairs & maintenance: Labor and materials have become more expensive since the pandemic, pushing routine and unexpected fixes higher.
Utilities: Energy and water bills can trend up with rate changes, extreme weather, or older systems.
Insurance: Premiums—especially for windstorm and flood—have been rising quickly; in some areas, costs have doubled in a year. Higher construction costs are a major driver.
HOA/Community assessments: Special assessments for things like tree trimming or street paving can hit without much warning.
Home age and condition matter
Older roofs, HVAC systems, plumbing, and exterior elements can materially change your annual outlays. A home that needs near-term replacements may turn a “cheap” mortgage into an expensive total carrying cost.
Make a fully informed decision
Even with a low-rate loan, the all-in cost of ownership may not fit a single-household budget after a divorce. Before agreeing to keep the property, total up taxes, insurance, utilities, routine upkeep, reserves for big-ticket items, and any HOA fees or likely assessments.
FMD Wealth Advisors can help you build a realistic post-divorce housing budget—so you know the full picture before you commit to keeping (or selling) the home. Let us help you. Book your free consultation here.
Disclosures: FMD Wealth Advisors LLC (“FMD Wealth Advisors”) is a Registered Investment Adviser.
This material is for general information only and is not individualized legal or tax advice. Consult your attorney and CPA regarding legal and tax matters specific to your circumstances. This content is intended to provide general information about FMD Wealth Advisors. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
Past performance is no guarantee of future returns.
Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable. Additional Important Disclosures may be found in the FMD Wealth Advisors Form ADV Part 2A. For a copy, please Click here.