5 Things you Need to Know When Dealing with Mortgage Amidst a Divorce
Divorcing a long-term partner can be a stressful event. If you and your partner had a joint mortgage, divorce and mortgage can be quite a hard combination. This can cause a lot of worry and confusion for both.
Divorce is a complicated matter, especially in the financial aspect. The statistics on divorce is growing and those who are going through one has to make several major decision. Here are some things that you can do in dealing with divorce and mortgage.
Couples who have the mortgage under both of their names sometimes decide on refinancing. The person who removes their name from the loan is free from any mortgage responsibility. This also means that they are removed from the title but can still benefit if the house is sold.
Keep up with payments
The most important thing is to not let the repayments lapse. Even if you are no living in the house, it is important to keep updated with payments.
In a joint mortgage, you and your partner are the ones paying and a mortgage company must be informed when this happens. Just because you are not living in the same home does not mean that you are free from obligation in a mortgage.
Before refinancing the mortgage under your name only, it will be wise to let your spouse agree to transfer the title under your name as well. Otherwise, your ex-partner will own part of it.
Buy out your partner
If you think that you are capable of paying for the mortgage yourself, you need to buy out your ex-partner. You need to know the current value of your home and what your sharing will be like. It does not have to be split 50/50. It will depend on whether both partners have been paying diligently.
This is another option and is good for those who do not have kids. Partners can sell and split the proceeds.
There are also other things to consider as part of the divorce agreement. You may have bought your partner out but there are also tax implications here. Just like buying or selling a house, several expenses and legalities have to be considered. Any sale will have valuation and legal fees.
If the house is on negative equity, it can bring problems during a divorce. The sale of the house will not raise enough money to pay for the mortgage so ex-partners will have to agree to split the debt.
Since divorce will shake up a lot of things, it is advisable to inform your mortgage company to avoid complications in the future.
Blake Mortgage can assist you in getting funds from your home. If you are going through a tough time such as divorce, Blake Mortgage can help you process things to give you one less worry. Before you make decisions about your home or mortgage when going through the divorce, it is a good thing to consult a good and reliable mortgage company. Please visit here for more info: https://www.blakemortgage.com/get-cash-from-your-home