It is common that one spouse wants to keep the marital home after the divorce, especially when that home has a low mortgage and a low mortgage rate. This article is part 2 of 3 articles discussing the many things to think about other than just the mortgage, specifically, who will responsible for and pay for the expenses related to maintenance, repairs and upgrades.
- Upkeep and maintenance. Who will pay for normal upkeep and maintenance?
- Will the in-home spouse be responsible or will this be a joint responsibility for maintenance costs?
- Will minor repairs under a certain dollar amount be the responsibility of the in-home spouse or both parties or will all maintenance issues be shared equally?
- Who will make decisions on what maintenance needs to be done?
- Is there a dollar amount that one party can decide without the other’s agreement such as any maintenance up to $750?
- An agreement delineating the responsibilities and contingencies should be part of the marital settlement agreement.
- Replacements and major expenses. What about major repairs and planned maintenance and replacements?
- Will there be a master plan for major planned replacement projects including timing, specifics about the project, budget?
- How will the funds be set aside for any planned replacement (windows, roof, etc.) that is recommended and agreed upon from the home inspection? Will there be a special account specifically for this purpose to ensure the funds are available when needed?
- Who will decide on the actual contractors?
- Who will manage the projects?
- If there are cost overruns will both parties agree to pay?
- If one party is displaced and needs to live elsewhere during the maintenance, will there be an offset or discount for that party’s contribution to the expense?
- If storage needs to be temporarily secured, will both parties pay for moving and storing household items?
- How will reimbursements take place? Will one party pay and request 50% reimbursement?
- How long before reimbursement is due to other party—3 days?
- Upgrades to Home.
- Who will decide on what upgrades are acceptable?
- Will there be a ceiling on the dollar amount of any upgrade and number of upgrades (e.g. $20K limit per year and only 2 upgrades in 6 years)?
- What criteria will be used in determining if an upgrade is necessary (for resale of home for example)?
- Who will pay for upgrades?