NAPLES, Florida. If you are getting divorced, one of the biggest shared assets couples own together is a house. Yet, chances are, if you have a house, you likely also have a mortgage. What happens to a mortgage when couples get divorced?
What you’ll choose to do with your mortgage will depend largely on how long you have been paying off the mortgage and whether your house has raised in value since you purchased it. According to Time, for many couples, the best decision will be to sell off the house, pay off the mortgage, and split the profits. In some cases, the split profits may even be enough to help you for a down payment on a downsized home. However, this solution isn’t always the best option, and some families don’t want to sell the family home for sentimental reasons.
The other option is refinancing the home under one name. However, the challenge of taking this route is that the person who takes over the mortgage must be able to qualify for the refinance with just their income alone. While it might be tempting to just keep both names on the mortgage, it is important to consider the financial and personal implications of this. If your name is on the mortgage, you may have trouble qualifying for other loans. Additionally, you could be held responsible for the debt if your former spouse fails to make payments.
There are other options when it comes to deciding what to do with a mortgage, but they aren’t as attractive as selling or refinancing the mortgage. If your house is worth less than what you paid, you might be able to speak to your lender to short sell the home. However, this option can hurt your credit. Another option would be to rent out the house, or to choose to continue living together in the home. Yet other couples choose to let the children reside in the home, with the parents splitting their time in the home during parenting time.
According to Bankrate, in some cases, lenders might let one person assume responsibility for the mortgage, but in general, banks will likely want you to refinance.
Finally, when deciding what to do with the marital house, it is important that both parties consider their debts, liabilities, and their incomes. Even if the house is paid off, owning a home can be costly. Before taking on the responsibility of the home, consider whether you can afford the taxes, maintenance, and, in the case of a condo, housing association fees. Be realistic, and, when in doubt, consider speaking to a qualified family lawyer in Naples, Florida, like Long & Alguadich, P.L.L.C. Our firm can take the time to understand your situation, responsibilities, finances, and other factors, and help you and your ex find the best solution to meet your family’s needs. If you’re not sure what to do with your mortgage after divorce, visit us at https://lanaples.com to learn more.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *