Among the most complex aspects of a divorce is figuring out what will happen to your home. There are usually no simple answers here. Either, both, or neither of the parties may want the home. In addition, either or neither may be able to afford it.
In cases where only one party is listed on the mortgage and title, that person owns the home and gets to keep it, unless there is a court order to transfer it or split it.
In a lot of cases, however, both parties are listed on the mortgage and title.
Here are the possible outcomes when that is the situation:
- Buy out: Sometimes, one of the former spouses will buy out the other’s portion of the equity, and that party will be removed from the mortgage and the title. At that point, only one person owns the home, and takes over the entire financial responsibility for it. For this option to work out, of course, one party or the other must be able to afford to do it.
- Give up equity: If one party doesn’t want the house and the other does, another option is for the party who is leaving the home to sacrifice their equity. They may do this in exchange for some other asset, or just to speed things along, if they just want it to be over.
- Sell house: If neither party wants the house, or neither can afford it individually, or if a court orders it, the house can be sold, and each party can walk away with their equity. This may take place right away, or months or even years in the future, depending on the scenario and what the parties are willing to consider. Most parties try to sell the home as quickly as possible so that they can finish separating their finances and space.
Imagine you are in a scenario where you are planning to stay in the home, while your ex plans to move out and take their name off the mortgage. How do you go about doing that?
What you can do is get a divorce refinance. You will apply using only your own qualifications, with your ex’s out of the picture. After evaluating your credit score, DTI ratio, assets and income, the lender will determine whether to approve you. If they do, your ex will no longer be on the mortgage. Going forward, it will be your sole responsibility to keep up with the payments.
Along with taking your ex’s name off of the home loan, you also need to get their name removed from the title to your home. A lawyer can help you move through that process so that you become the only owner of the home.
Apply for a Divorce Refinance
PLC is based in Cooper City. We know you are eager to move forward with your life, and we can walk you through a divorce refinance quickly and easily anywhere in Florida. To schedule your consultation, please call 954-840-8811.
