One of the most complicated and messy legal matters that must be addressed during divorce is that of the mortgage. “What will happen to our mortgage during the divorce?” is a question that family law attorneys hear all the time. There are many answers to this question, and your attorney will help you choose the right option. Contact a Phoenix family law attorney today to get started.
Your Divorce Mortgage Options
Sixty-three percent of married couple’s most valuable assets is their house or condominium, according to Securian Financial Group. Listed below are your options for dealing with your most valuable asset, your home, during divorce:
- Sell – If the home can be sold for profit, selling it will be the easiest way to split the assets. However, if you do not have equity in your home, this is not always the best option. Selling the home may also not be an option if one party plans on living in it afterward.
- One party keeps it – If one party can afford to pay the mortgage on their salary alone, a good option could be to refinance the home in their name. The other party’s name should not be on the mortgage afterward, as they stand to be at risk if the other party cannot make their payments in the future.
- Rent it – If you can rent the home and continue sharing the property with your ex, you can have the best of both worlds: continue making mortgage payments and owning the home, while not having to live with your ex.
- Quitclaim deeds – Ultimately, this may be a risky option. If you or your ex cannot afford to refinance the home as an individual, the other party may contribute by signing a quitclaim deed. This forfeits that party’s claim to the property, and their name stays on the mortgage, which is risky. However, a quitclaim deed may be beneficial to the other party and this can act as a way of negotiating for other marital assets.
- Short Sale – If you cannot afford to sell the home, a short sale will cancel the debt, though it will have negative tax and credit implications. Additionally, you do not gain anything from all of your past mortgage payments. You no longer owe mortgage payments, though you no longer own the home either.
Call a Phoenix Family Law Attorney Today
Sixty-five percent of homebuyers are married couples, according to one source. If you are going through a divorce and are wondering what will happen with your mortgage, we encourage you to contact a lawyer. The Phoenix divorce attorneys of the Law Office of Ronald L. Kossack are here to provide answers today.