What concerns should I have with home ownership if I divorced?
Sometimes the unthinkable happens in years of marriage. You and your spouse decide to divorce. One of the most valuable assets- your home, will raise many questions and raise a number of concerns for you both. Some of the questions you will need to determine is who will get possession, how to divide equity and who is liable for repayment of the mortgage?
Determining how to divide the equity can be complicated. But there are solutions: you can sell the property/properties or even buyout the spouse who would like to remain in the home. The spouse who would like to stay in the home can refinance the mortgage and pay the other spouse his/her share. If this was to occur, one spouse can transfer title of home ownership to the other spouse. As well, the liability for the mortgage can also be transferred over to the one spouse who is responsible for the mortgage thereafter. The spouse responsible will usually need to refinance the home-equity loan. However, not all borrowers meet the income requirement or credit to qualify for a refinance. If either spouse owes more than the house is worth and neither will be able to pay for the home, a short sale might be the only option.