Most people do not buy their homes outright and instead, get a loan and pay it off over many years. When a couple divorces, the mortgage still must be paid and the couple can either sell or keep the home. If the home is sold, those proceeds would pay back the mortgage and any remaining amount could be split between the couple or any remaining debt could be split between the couple. However, if the home is not sold then the divorcing couple must establish who is responsible for the mortgage, at what point, and how to remove the non-responsible party so that they cannot be liable if the responsible party defaults. As part of the collaborative divorce process, we have a mortgage expert who can make this process smoother. The mortgage expert meets with the parties to determine the plan and then works with the legal expert to codify that plan into the language of the property settlement agreement.
Purchasing & Refinancing
Even if the parties decide who will pay and how they want the mortgage to be resolved, there still remains the process of making it happen. Our mortgage expert assists with this process as well, helping file the paperwork that transfers the interest in the property, as well as working with the financing company to refinance the mortgage so only the responsible party is named in the mortgage documentation.