While property division laws vary from state to state, in any situation, if you own a home, you will have to figure out what to do with it. There are a few scenarios that could result, which your family law lawyers in Springfield, IL, can walk you through. Each option has advantages and disadvantages. Here is an overview, though, of what you can expect. Refinancing If one of you wants to keep the home, refinancing in one spouse’s name can be a good option. Lenders won’t care if you are divorced or not. Both of you will remain responsible for the mortgage unless the name on the mortgage is changed. Refinancing is one way to do that. However, you should keep in mind that this could be difficult depending on income and credit rating. A lender may not approve the new mortgage in one name only. If you do refinance, it is important that in the divorce agreement, it is clear that the house belongs to only the spouse whose name it is in. In addition, the spouse that assumes the mortgage will now be responsible for maintaining it and paying the mortgage on his or her own. Selling If nobody wants or is able to keep the house, then it is probably best to sell it. Selling a house, though, comes with its own challenges. Depending on the current real estate market, it could be difficult to sell the house. This could delay or complicate the divorce proceedings. A court may issue an order that the home is auctioned, which could cause financial issues because auctions usually bring in less money than a sale would. This is especially problematic if you owe more than your home is worth. Stay in the Home Another option is for one spouse to continue living in the home and maintain the current mortgage. If both spouses’ names are on the mortgage, though, it is essential to work with your family law lawyers in Springfield, IL, to address this in the divorce. Who is responsible for mortgage payments and maintaining the home needs to be clearly laid out. In many cases, the spouse who is not financially responsible can take a credit hit because the other spouse stops paying the mortgage. This makes this a less than ideal situation. The Best Solution There really is no ideal solution or best solution for what to do with a home when you are divorcing. It really depends on your specific situation. If the housing market is good and neither of you wants to stay in the home, then selling is your best option. However, if the market isn’t good or one of you wants to keep the home, the next best thing could be refinancing in one name only. If neither of these is an option, then you likely will be stuck with the home and will have to work out in court how the situation will be handled. It is a situation like this where having good family law lawyers in Springfield, IL, will come in handy.
Related Articles -
family, law, lawyers, Springfield, IL,
|