How Can a Mortgage Be Handled in an NJ Divorce?
Dividing up everything you own together can be one of the most difficult parts of the divorce process, and one thing that can really complicate matters is a mortgage. If you’re still paying off your home, what should you do? You have some options, and our Morris County, NJ divorce lawyers can help you pick out the right path forward.
How Can a Divorcing Couple Handle Their Mortgage Obligation?
There are a few ways to handle a mortgage when you are getting a divorce. You could:
Sell the house: This is often the easiest way to settle the matter. The proceeds from selling the house can then be split up with the rest of the marital assets during the property distribution process.
Refinance it in one partner’s name: If one spouse wants to keep the family home, then they can do that. They would have to refinance the home in their name, using only their credit. The mortgage lender would then have to accept them as the sole guarantor of the home loan and the property could be retitled. This method may not work if the spouse who wants to take the home has poor credit, low income, or anything else on their record that would make them attractive to a lender.
Pay your spouse their equity: If one spouse wants to keep the house, they can give their partner their share of the equity in the house. If the home is worth $500,000 and they owe $100,000, the couple has $400,000 in equity. If they have been paying equal shares of the mortgage, that means that one spouse would need $200,000 to buy out the other.
Which Factors Should Influence Your Decision?
This is not a decision that can be made lightly though. When deciding what to do with the marriage, you should also consider other factors, like whether or not one spouse can even handle the financial burden of paying back this mortgage on their own.
It’s also important to consider your children in all of this. If you have kids, they probably have memories in this house. Moving could add even more stress to their lives when they are already worried about your divorce. Selling the house might also result in you needing to move to a different area, taking the kids away from their school and friends.
Can a Lawyer Help With Mortgage Negotiations?
A lawyer can help you look out for everyone’s best interests. Arguments over property can get heated, but we can help you try alternate methods of dispute resolution, like mediation. If there is a solution for handling your mortgage that works reasonably well for everyone involved, we can help you find it.
Talk to an Attorney Today
When you are going through a divorce, a lawyer can help advocate for your own interests and fight for the best possible outcome. Contact Townsend, Tomaio & Newmark and schedule a consultation with our team. We would love to tell you more about how we can be of assistance in this difficult time.