Dividing property during the divorce can be complex, especially when dealing with valuable assets. Aside from joint accounts and other marital belongings, deciding what to do about the family home can lead to complications. This property usually has an accompanying mortgage, which can be a considerable amount signed under the names of the divorcing couple.
The most appropriate course of action concerning the mortgage can vary depending on the divorcing couple’s preferences. Based on the circumstances, they can have different options, including the following:
- Agreeing to sell the property and split the proceeds between parties
- Having one party take on the mortgage by paying off the other’s equity and refinancing it
- Taking no action and maintaining the mortgage as is, allowing the divorcing couple to keep the property as an investment
These options can only be possible based on the situation. If the case involves severe conflicts, it can be challenging for the parties to find common ground when deciding regarding the mortgage. Moving forward in the process can be simpler if they are on good terms.
Still, other circumstances can impact whether a party is eligible to refinance or maintain the mortgage. If they cannot meet the financial requirements, they may need to find other ways to keep the home.
Considering factors that may arise after the divorce
While going through the divorce, you may believe keeping the home and mortgage is the ideal option. However, it may become more difficult to do later after finalizing the process when you and your former spouse will be transitioning to post-divorce life. Before making any decisions concerning your mortgage, it can be helpful to seek legal counsel first. Valuable insight can help you consider all aspects before settling property issues with your former spouse. You may also determine appropriate options that will not adversely impact you and your family financially.