You have a mortgage on your family home. It’s affordable for you and your spouse, and you applied for it together.
Now, however, you’re getting a divorce. Can you keep that same mortgage? Is it still going to be affordable? If you want to keep the home in your divorce, these are questions you must ask.
Refinancing is typically the best option
Most of the time, couples who get a divorce decide to refinance their mortgage if one party decides to keep the family home. This doesn’t matter if they’re selling, of course, or if they want to keep the home together — to rent out, for example, or to use for the children in a “nesting” custody arrangement. But, i
The problem with keeping the exact same mortgage is that both of you are liable for repayment. The bank does not care that you are divorced or what your divorce agreement says about the payments. They just want to get paid. If, for example, you retain the home but then fail to make your payments a year after the divorce, your ex would be on the hook for those payments because their name is still on the loan. Most divorcing spouses are (understandably) not comfortable with this kind of risk, which makes refinancing necessary.
Considering all your options when you’re going through a divorce
As you can see, much of working through a divorce is just considering the future and making decisions with that future in mind — particularly where financial issues are concerned. It’s often difficult to know where to start, and you need to know exactly what steps to take at this time to best protect your future interests. Working with an experienced attorney is the smart thing to do.