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Mortgages need care during a divorce

Divorce
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If you and your spouse bought a house together and have subsequently made the hard choice to end your marriage, you will now need to make more hard choices including what to do with your house. As you evaluate the different options available to you, it is important for you to understand the implications of your choice as it pertains to the mortgage you carry on your home.

If your spouse wishes to keep your family home after the divorce, you will want to make sure that your joint mortgage does not remain active. According to The Mortgage Loan, your lender may still view you as financially liable for the mortgage if your name is on the loan, even if you have signed a quit claim deed turning over ownership of the property to your former partner and if your divorce decree stipulates that your former spouse is supposed to make all mortgage payments.

You may need to investigate the ways your spouse can buy you out of the home and get their own mortgage, so your name does not remain attached to the debt on the property. If this is not possible, you might be better served by selling the home as part of your divorce to avoid being pursued for repayment of debt that your former spouse was supposed to pay if they default.

If you would like to learn more about how you might protect your financial future when negotiating the terms of your divorce with your spouse, please feel free to visit our website.

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