Florida couples who are planning to legally separate might need to consider obligations to standing mortgage agreements and ownership of the family home during and after proceedings. In addition, according to a recent article, certain actions, such as purchasing a new house to live in after the marriage is dissolved, might be complicated by property ownership interests.
Dealing with the family home during property division can be complicated by a standing mortgage agreement. For example, if the couple signed onto the loan together, both parties might still be considered liable for outstanding debt even though the property was awarded to one party in a divorce agreement. This leaves the credit score individual who moved out of the home open to the influence of the other party's payment history. For example, if the person staying in the home is unable to make payments, the other person's credit score might suffer as a result. In addition, the individual who moved out of the home might seek reimbursement for investment he or she might have made to the property, which might include a portion of the down payment on the property.
Both of these difficulties could be resolved if the mortgage is refinanced to reflect the new ownership arrangement. In addition to removing the other party's name from the loan, the process might also result in a cash out that can be used to reimburse that party for his or her investment.
The ownership of a home and liability for mortgages are only two of the issues that a couple might have to discuss when entering divorce proceedings. The process can be complicated and difficult to navigate without professional help, but an attorney could help a client understand the different areas of contention that might surface during negotiations. That attorney might provide advice and representation throughout the process.
Source: Credit.com, "How to Divide Your House in a Divorce", Scott Sheldon, July 09, 2014