Dear Vanessa,
I’m 58 and going through a divorce, and I feel really torn about what to do. My husband offered me the house as part of our settlement, while he takes the super and some cash. I have enjoyed living here for over twenty years and it would be difficult to let go. However, I am afraid that I will no longer be able to cover the costs of my income as a nurse, especially now that my retirement is approaching.
Only a small amount remains to be repaid on the mortgage and the house has increased significantly in value over the past twenty years, making it an attractive asset. Still, taking the house would mean I would only have the super I can earn over the next nine years before I retire, assuming my health allows it.
I also have a son who is grown and now lives on the highway. I don’t want to sell the house and use all the money if it means he won’t receive an inheritance in the future.
I wonder if it would make more sense to downsize or maybe even rent for a while, but I feel unsure about what is best in the long run. I would be very grateful for any advice on how to approach this and whether it is worth letting go of the family home.
Thank you,
Carol
Send your questions to leading money teacher Vanessa Stoykov at floringafter50@dailymail.com.au
Leading money expert Vanessa Stoykov (above) advises Carol to have the family home appraised before making any other decisions
Dear Carol,
First and foremost, it is crucial that you take good care of yourself. If you’re 58, you’ve got a whole life ahead of you, especially considering that the average life expectancy for women in Australia is around 85. Your son would like you to be safe and well supported in the years to come. Right now, it’s best to focus on your own future stability so that the decisions you make can benefit both you and your family in the long run.
Start by looking at the numbers. The fact that your house has increased in value in 20 years is great news, especially if there is only a small amount remaining on the mortgage. Have you had it appraised recently? Knowing its current value can help you clearly assess your options and see the true financial picture.
Then think about where you would like to live. Could downsizing to a smaller house or apartment in a comfortable environment be an option? Here’s my free tool to help you see what interest rate you might qualify for: Get the best mortgage rate tool. This tool can give you a clearer idea of what a new home would cost in monthly mortgage payments, helping you decide what is feasible within your budget. It could also show whether it’s worth keeping some cash on hand for flexibility and a sense of security.
If you decide to cut back, consider using extra money to build your pension, which will be essential for your retirement, while keeping some outside super to invest in lifestyle and extra financial flexibility. In this way you create a safety net both inside and outside the super, allowing you to meet your future needs in a balanced way. Investing wisely now will give you a stronger sense of control and peace of mind as you prepare for retirement.
I highly recommend asking an independent financial advisor for help. They can provide you with tailored guidance to ensure you make the best decisions for your future.
Divorce and moving can be incredibly stressful, but on the other hand there is often a brighter and more secure life. Thank you for writing and I wish you much success and joy in the years to come – you still have plenty of time to enjoy life and prosper!
Kind regards,
Vanessa