There is no fool-proof financial formula for divorcing couples to follow when going through the trauma of a divorce. To this, above all, be true, though: Do not make financial decisions based on your emotions.

This is very difficult advice to follow. An example: Divorcing couples often argue over who will get to keep the family home and, sadly, it is often the spouse least capable of affording the expenses of owning the home who ends up with it, often losing her or his right to such things as retirement savings and other investments in the process.

One obvious problem: When a divorce is finalized the amount of potential gains that can be exempted from taxation if the house is sold goes from $500,000 to $250,000. (It can, however, move back up to $500,000 in the future if the homeowning spouse remarries. Consult your tax advisor.)

Most financial advisors suggest that the best approach is to sell the home while the large taxable gains exclusion remains. More to the point, don't let yourself be stuck with an asset that exceeds your needs in size and your finances in cost. It is extremely helpful to discuss this with a trusted advisor. For more information call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.