What You Should Know About Your Mortgage When You Divorce?
The divorce process has so many moving and evolving parts. Our clients are often not only concerned with how their family will be emotionally impacted, but they are also interested in learning how their financial landscape will change, especially their home mortgage.
One of the first financial questions we get asked is how their mortgage will be impacted. For many couples, their home is their most significant asset, even if there is no great deal of equity built-in.
Here are some things to consider and have on hand when beginning to discuss how your mortgage will be impacted:
- Have an accurate accounting of income, debts, asset streams, and credit scores
- Know how your mortgage was set up and titled
- Determine if one person will be staying or will the home be sold
- Explore if the person who wants to stay can afford the payments, taxes, homeowner insurance and maintenance fees associated with homeownership
- Agree to bring in a trusted realtor to do a market analysis or n appraisal company to determine the value of the home
- Learn how each person’s taxes will be impacted
- If one person wants to stay in the home, can they qualify for a refinance
- If the “out-spouse” has to stay on the mortgage, how will that affect their credit
The collaborative divorce process’s foundation is to collaborate to find common ground, improve communications, and ultimately reach a mutual agreement. Deciding what to do with your home is made much more comfortable when divorcing couples keep communication lines open.
The Collaborative Practice San Diego is a nonprofit, multi-disciplinary referral network of independent professionals of attorneys, mental health professionals and financial advisors working together to learn, practice and promote Collaborative processes for problem-solving and the peaceful resolution of family law issues in regard to co-parenting, with an eye toward preserving the emotional, as well as the financial assets of the family.
Contact us today for a FREE CONSULTATION to see how we can help you navigate how you and your spouse can handle your home mortgage during your divorce process.
Note: This information is general in nature and should not be construed as legal/financial/tax/or medical advice. You should work with your attorney, financial, medical or tax professional to determine what will work best for your situation.
