What to do with your home during divorce….

Getting out of a marriage is hard and life changing, but getting out of a mortgage (and the marital home) can be even harder. After years of co-signed loans and joint finances, separating yourselves will require a lot of patience.

Rule #1….Keep up with your bills! Seriously.
With everything going on, it’s easy for monthly mortgage payments to fall through the cracks, especially if you don’t plan on staying in the house. But in order to buy again after the divorce, it’s important to keep your credit score good, and missing payments while your name is still on the mortgage isn’t going to help.

Rule #2….Have an agreement in place of who will pay what.
This means more than just paying your mortgage. Any late bills can hurt your credit score. So make sure you have an agreement in place about who pays what.

Rule #3….Have the discussion.
If you and your spouse can have a good discussion about the house, it’s best to decide very early if you will sell or if one of you will stay. You could both stay in the house, at least until it sells and you can split the equity. However, in most cases that is impossible for obvious reasons.

If you jointly decide that one spouse will keep the house the most important factor will be whether or not one of you can afford the house on your own. In order to remove one spouse from the mortgage, you actually need to refinance, or replace your existing loan with a new one.

That means that the spouse keeping the house will need to be able to qualify on his or her own–and then keep up with the payments, with or without alimony.

Call us today with questions about what to do during this difficult time! We are here to help! 770.924.1111

Speak Your Mind

*