Family Law

Divorce and what to do with the Family Home

By May 26, 2014No Comments

When going through a divorce, some couples find that it desirable for one spouse to keep the family home. In such case hire family lawyers to settle down this issue. After all, the kids are comfortable living there and staying would save the expenses and hassles of moving. For other couples, however, it is too much of a financial burden for one partner to keep the house.So it is better to ask about divorce mediation process in Maryland to avoid the risks.Fortunately, there are options and tips for both types of couples.

If One Spouse Wants to Keep the House

If one spouse would like to keep the home, the first thing to do is to make sure that he or she can afford it or can approach the divorce attorneys in Jonesboro to know more options available that helps them in clearing up their financial crisis. Some spouses may be able to get a loan based on their individual income and assets. If there is enough equity in the home, the spouse can use it as collateral for the loan to buy out the other spouse.
If the house still has a mortgage, spouses who decide to stay in the house should refinance the loan in his or her own name and take the other spouse’s name off the loan. This way, the spouse moving out is freed from the loan’s obligations.

If Neither Spouse Wants the House

Sometimes for financial or personal reasons, neither spouse wants to remain in the house. The best thing to do in this case is to sell the house. While waiting for the house to sell, it is important to keep up the mortgage payments to maintain good credit.

If one spouse alone cannot afford the mortgage payments, he or she can work out an arrangement in the marriage settlement where the other spouse will contribute to the payments and be reimbursed once the house sells.
Couples who are already in financial trouble and cannot keep up with the mortgage payments may consider a short sale to get the house off their hands. This is where a lender agrees to allow the house to sell for less than the value of the mortgage. Sometimes the lender may not hold the couple responsible for difference between the value at which the house ultimately sells and the remaining mortgage balance.

Experts recommend that couples do not simply walk away from the mortgage and allow a foreclosure of the home, as both spouses’ credit ratings would be ruined for the next seven years. In addition, the lender may still be able to sue both spouses for the remaining balance.

Filing for bankruptcy is as important as getting the right domestic violence lawyer for hire. Instead of walking away from the mortgage, filing for bankruptcy can be a better option. In many cases, this allows divorced couples to renegotiate the debt.

Source: “Need to Sell your House in Divorce?”