When a couple decides to end their marriage, asset division is a given part of the equation. However, for some Connecticut couples, the issue of a shared mortgage could come to the forefront in the midst of a divorce agreement. It is important for both individuals to understand how to deal with such issues ahead of time.
The ideal situation is where both divorcing individuals agree to sell the property and divide the proceeds per their settlement agreement or by an order of the court. This often happens if there is equity in the home and both parties want to take a share. However, in some cases, one person may wish to remain in the marital home instead of selling it.
If one person desires to keep the residential property, he or she can simply buy the other party out by qualifying for a mortgage in his or her own right. If this individual is unable to qualify for a mortgage, however, the other spouse might decide to give him or her a few months or more to achieve an income that will enable him or her to qualify. This can benefit both parties in that one person can stay in the home and the other person gets his or her share of the equity in addition to getting his or her name off the mortgage.
Divorce is a complicated process, even more so when shared assets are considered. If Connecticut residents are considering divorce, it may be beneficial to seek out legal support ahead of the proceedings to determine what can and must be done to prepare for the process. This can help both partners achieve an equitable and fair divorce settlement.
Source: The New York Times, "Divorce and the shared mortgage", Lisa Prevost, Oct. 30, 2015