Many homeowners have faced challenges in recent years, from lost jobs to plummeting home values. But life goes on in the midst of adversity, and issues such as divorce can add complexity to a host of financial issues. With wise planning and realistic negotiating positions, couples can usually figure out a way to fairly factor a home’s value into the property division aspect of divorce.
While many couples will decide that one spouse will retain possession of the home, sometimes an outright sale is the most prudent strategy, particularly if financial difficulties have led to missed mortgage payments and the threat of foreclosure. Depending on a series of factors, a couple may also want to explore a short sale or loan modification, or consider the relationship between bankruptcy and divorce. If sale of the home is crucial to getting divorced, it is best to act soon to expedite the process.
If one spouse will be remaining in the home and paying the mortgage, the other spouse must be sure to obtain a quitclaim deed to avoid future legal responsibility for the home and any attached debt. Depending on the circumstances, transfer of the property to one person may be best accomplished during refinancing, or one spouse may be able to assume the mortgage.
Homeowners who are considering divorce can learn about their legal options by discussing their goals with a family law attorney who also understands important financial issues such as mortgage modifications, foreclosure mediation and stripping a second mortgage, as well as the Chapter 7 bankruptcy and Chapter 13 bankruptcy process.
Comprehensive Family Law and Debt Relief Advocacy May Best Serve Your Needs
An experienced divorce lawyer can share a range of insights about the complex financial aspects of divorce, including how child support and spousal support issues can factor into the ultimate decision to divide any equity in a family’s primary home. Most divorce issues can be mediated before formal submission to family court, and an amicable resolution can produce economical results for both sides.
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