Many of our clients come to us with mortgages. This makes perfect sense, of course- married couples live together, and many of them choose to buy a home. However, this does present certain complications, and one of the most common questions we receive is, "What are we going to do with the mortgage?"
Well, TIME Magazine has tackled that question in a useful story on their website. Their story does a good job of running down the financial issues associated with bringing a mortgage into a divorce, and offers some possible solutions to that dilemma.
The TIME piece offers some of the following advice:
- The easiest solution is to simply sell the house and split the profits
- If the mortgage is underwater and selling isn't an option, you can agree to a short sale or try and rent the house
- If one spouse wants to keep living in the house, it's a good idea to re-finance the mortgage into the sole name of the party keeping the home - otherwise, the spouse who isn't living there will still be considered responsible for payments by the lending company (including an impact on credit for missed payments)
As part of Split Simple's uncontested divorce process, we will help you find the right solution to your mortgage problems. We'll evaluate the state of both parties' incomes and provide direction regarding how to address all mortgage related issues (including tax related mortgage interest and property tax deductions in a divorce).
If you live in Denver or any other Colorado community and you want to learn more about our uncontested divorce process, please call Split Simple today at 855-665-9920 for a free consultation.