Keeping a joint mortgage after a divorce

| Oct 19, 2016 | Property Division |

If you are like many people in Georgia, your home is the single largest financial asset that you and your spouse own. This reality, along with the emotional attachment that many people have to their homes, it is no wonder that deciding what to do with your house when you get divorced can be so complex. What exactly are your options about your home during a divorce?

Bankrate explains that it is not uncommon for one spouse to push hard to remain in their homes after getting divorced. However, it is recommended that you think carefully about choosing this option before making a decision to do so. If you are able to refinance your mortgage so that it is in your name only, keeping your home becomes less complicated than if you retain a joint mortgage with your former spouse.

If your former spouse wants to stay in the home but is unable to get a new mortgage, you could agree to keep the joint mortgage. However, know that even if you do not live in the home, your credit could take a hit if your former spouse fails to make payments. An agreement detailing financial responsibilities and consequences if those are not met is recommended in these situations. Challenges like these are some of the reasons that divorcing spouses instead choose to sell their homes.  

If you would like to learn more about making property division decisions during your divorce, please feel free to visit the marital asset division page of our Georgia family law website.

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