Filing for divorce can be an extremely disruptive event in an individual's life. Not only are you dealing with the emotional ramifications of a failed marriage, but you must deal with complex financial situations as well. Many married couples invest in the purchase of a home, and dealing with the mortgage payments after a split can be challenging.
Here are three tips that you can use to help successfully divide your mortgage during a divorce in the future.
1. Consider selling the house.
If both you and your spouse's names are on the mortgage, your financial institution will continue to hold you both liable for timely mortgage payments. This liability can become stressful, especially for the spouse who will no longer be living in the home once the divorce is final.
You should consider selling the house whenever possible to ensure that a mortgage division doesn't contribute to the delay of your divorce. Proceeds from the sale of the house can be split between you and your spouse, and this money can be used to purchase properties independently of one another.
2. Consider refinancing your mortgage.
Another simple solution that you can use when trying to divide your mortgage during a divorce is to refinance the existing mortgage. The refinancing process allows the spouse that will remain living in the home after the divorce is finalized to obtain a new mortgage solely in his or her name.
Removing the other spouse from the mortgage eliminates any financial liability for that spouse in the future. If both you and your spouse have good credit, then refinancing might be a simple way to help you solve your mortgage division problems during a divorce.
3. Consider a loan assumption.
If your mortgage contains a loan assumption clause, you can enact this clause to help transfer both the ownership of the property and the mortgage to a single spouse. Loan assumption allows the spouse who will retain possession of the home to assume the terms of the mortgage from the other spouse.
The repayment terms remain the same as when the mortgage was originally taken out, but only one spouse will be financially responsible for making timely payments.
Dealing with the division of a mortgage during divorce can be challenging. Be sure that you retain an experienced attorney to help you make your mortgage division legal. Your divorce attorney will be able to help you identify the division option that makes the most sense for you, and your lawyer will ensure that all transactions involving your home are completed legally.Share
8 October 2017
Hi there, my name is John Michaels. Welcome to my website about general attorney services. When I was wrapped up in a neighborhood dispute, I decided to consult with a general attorney to receive guidance and support. The attorney helped me understand how to best proceed with the dispute to achieve a mutually-acceptable resolution. Through this experience, I was inspired to share information about the services provided by general attorneys. I invite you to visit my site daily to learn about these important service offerings and their role in your dispute resolution activities. Thank you for coming to visit my site.