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Considerations for keeping home after divorce

On Behalf of | Aug 18, 2018 | High Asset Divorce

It is not at all uncommon for a person in New Jersey to want to keep their home even after they get divorced from the person they may have bought the home with. This can be especially the case for families with young children as it may offer parents a way to give their kids some type of stability during an otherwise tumultuous period in their lives. For both spouses, there are special concerns before making the choice to do this.

As explained by Bankrate, the person who keeps the house will need to carefully evaluate their ability to not only make the mortgage payments but also keep up with taxes, insurance, maintenance and repairs. When applying for a solo mortgage, the receipt of alimony may help depending on the amount and duration that it will be paid for. The title to the house should also be transferred to the sole person financially responsible so they do not end up with all of the debt but still sharing the asset with an ex.

Time Money recommends that spouses who are considering letting go of their portion of a home so the other person can keep it will want to protect themselves financially as well. They should require that their spouse refinance the mortgage from a joint to a solo loan. This is the only true way of eliminating one person’s responsibility for a mortgage.

Even if a divorce decree outlines home ownership and financial responsibility to one party and if a quit claim deed has been signed, banks can hold both parties named on a joint mortgage liable for any debt.