Deciding what to do with the house can be a major quandary for couples getting a divorce, particularly when they share a mortgage.
When there is equity in the home, each spouse typically wants to take a share as part of the settlement agreement. But if one person wants to remain in the home, rather than sell it and split any profit, then that spouse will likely have to qualify for a mortgage on his or her own. Spouses who choose to stay may have to refinance their mortgages in order to cash out enough equity to pay off an ex.
But even a spouse who has the financial resources for a buyout without drawing on home equity will still probably have to get a mortgage in his or her name.
“The person walking away wants their share of the equity, but also wants their name off the mortgage as soon as possible,” said Kathleen B. Connell, a family law lawyer and lecturer in Atlanta. The mortgage obligation can tie up that person’s credit, and “if there’s a default,” Ms. Connell added, “the mortgage company is going to sue them both, regardless of what the divorce agreement says.”
Source: New York Times
Read more here.
Attorney Sean Y. Palmer has over 20 years of legal experience as a Texas Attorney and over 25 years as a Qualified Mediator in civil, family and CPS cases. Palmer practices exclusively in the area Family Law and handles Divorce, Child Custody, Child Support, Adoptions, and other Family Law Litigation cases. He represents clients throughout the greater Houston Galveston area, including: Clear Lake, NASA, Webster, Friendswood, Seabrook, League City, Galveston, Texas City, Dickinson, La Porte, La Marque, Clear Lake Shores, Bacliff, Kemah, Pasadena, Baytown, Deer Park, Harris County, and Galveston County, Texas.
If you live in the Houston area and would like to consult with one of our attorneys, please leave your information below.