Part of the “American Dream” is to own your own home. Millions of Americans put a large amount of their monthly income toward paying the mortgage on their family home. The equity built in the real estate can help provide financial stability for you during your retirement. During a marriage, it is likely that you and your spouse have both contributed not only financially to the home, but also to the basic upkeep. As with your other assets, during a divorce, you will need to divide your marital residence. There are several options you may want to consider when dividing your real estate during divorce.
One of the most common options for dividing the equity in the real estate is to sell the home and to divide the proceeds of the sale. The advantage to this is that both parties will be no longer attached to the real estate or each other, and can move forward in purchasing a new home. One downside to this can be if the housing market is slow in your region, it can take months or even longer to get the house sold. In addition, you and your spouse will want to come to an agreement on how the payments, taxes, and maintenance will be divided while waiting for the sale.
Another common option is for one party to stay in the home and refinance the home solely in his or her own name. This allows one party to retain the marital residence and continue to reside there while removing the other spouse’s name from the title and financing. For this to work, the person wanting to refinance the home must financially qualify. There is no way to force the bank to allow the remaining spouse to refinance if he or she cannot qualify. Accordingly, before agreeing to this approach, it will be beneficial to make sure the remaining spouse can actually qualify.
Finally, some spouses agree that one spouse may remain in the home and make the payments. In many cases, this is attached to certain conditions, such as remaining until the parties’ minor children graduate high school. This approach is often disadvantageous to the spouse who is not remaining in the residence. His or her name will still be attached to the home and likely the financing even though he or she no longer resides in the house. This will make it difficult or even impossible to obtain a loan for a new home. Moreover, if the remaining spouse fails to timely make the mortgage or tax payments, the other spouse is still financially responsible for making sure those payments are completed.
If you have questions about how your real estate will fit into your divorce, contact us today. We can talk to you about your options and help you move forward with your case.
Are you interested in seeking an annulment? If so, contact Williams Law Group, LLC right away. Our family law attorneys will review your case to determine if an annulment is an option. If it is, we will guide you through the process and ensure you make the best decisions for your future. Call our office at (908) 738-8512, email us firstname.lastname@example.org, or contact us through our confidential online form to schedule a consultation
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