Many issues can cause conflict when a couple is headed for divorce. Child custody and support, alimony and the division of property are some of those issues. If you’ve lived in your home for some time, the decision about what will happen to the house and who will keep living in it can be hotly contested.
If you’re wondering what options are available for splitting up the home when you divorce, there are three primary options.
Some lenders have language in their loan agreements that allow someone to ‘assume’ your mortgage. If you and your soon-to-be ex are already locked in at a competitive interest rate and have affordable payments, then you may not want to give them up. If your lender permits loan assumption, you may be able to take over the mortgage and keep your desirable interest rate.
If your lender prohibits loan assumption, you may have to consider refinancing your mortgage in just your name. You may have to give up other assets in exchange for receiving your ex’s share of the home.
This is a great way for your children to be able to stay in a familiar environment. This is especially important when you’re trying to provide them with continuity and stability.
The final option for keeping your home when you divorce is for you and your ex to agree to keep your mortgage as-is. Unless you two plan on continuing to live together, one of you will have to make alternate living arrangements. You may find it difficult to take out a mortgage on another home if you share one jointly with your ex. This is especially true when you have built up very little equity.
If you’re going to keep the original mortgage that you have, you’ll need to trust your ex-spouse to make the loan payments in a timely fashion. If they miss them, your credit could be affected and your house foreclosed upon.
Splitting up marital property and assets is complex. There are many financial and tax implications associated with taking on a new mortgage in Florida, refinancing your Kissimmee home and keeping the existing one. A family law attorney can advise you of the pros and cons associated with the different options available to you.