Florida residents might be interested in a recent article discussing mortgages, home ownership and divorce. In many marriages, the couple will buy a home that will be considered joint property. If the couple decides to separate, a number of factors might affect each party’s stake in the asset.
For example, if the couple has not divorced but plans to live separately, one spouse might stay in the home while the other seeks to purchase a new house. Because the couple is still considered a legal entity, the purchase of the new home might give the other spouse a stake in the new property. This issue can be avoided if that spouse voluntarily gives up the interest in the property through a quitclaim deed.
After the divorce has been finalized, the mortgage of the family’s original home might need to be reviewed. In many cases, one spouse moves out of the home while the other person is given ownership of the property in the divorce decree. Even though one person has moved out, they might still be considered liable for the mortgage payments because the couple was legally joined when the loan was granted. This means that the person who still lives in the home and makes the payments might be able to influence the other party’s credit score. This problem could be fixed if the mortgage is refinanced and the other party’s name is removed from the loan.
Decisions regarding the ownership of the family home and other assets and liabilities are only a few of the factors that might complicate a divorce. Other issues, including spousal and child support and child custody might make the process difficult for some people. However, those who are involved in a divorce may wish to consult a family law attorney who might be able to provide assistance throughout the process.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, July 09, 2014