While there are many things that can hold up the finalization of a divorce, money issues are often a main concern. Deciding what to do with a mortgage in the event of divorce is one of the biggest financial hurdles that must be tackled before a final agreement can be reached. For couples in Maryland and elsewhere, deciding what to do with a mortgage can be difficult, but there are actually several options available to help resolve this problem.
When it comes to the marital home, there are some spouses who may wish to keep the property and others who just want to put it up for sale. While selling the property and dividing any profits or losses certainly seems like the ideal way to split and move on after divorce, this may not feel like the best option for some. This seems particularly true if there are children involved.
A spouse who wishes to keep the marital home can try to refinance it in his or her own name, though financial ability will determine if this is a possibility. It is also possible to try an assume the loan from the spouse who no longer wants to be financially responsible for the home, but not all loans have this as an option. Finally, it is possible for a spouse to transfer his or her rights of ownership. The biggest problem with this is that it does not remove him or her from financial responsibility should the mortgage go into default.
While making the decision of how to handle a mortgage in divorce is not easy, by any means, it is always good to know that there are a number of options available to assist with the many different circumstances experienced by divorcing couples. Maryland residents can seek legal assistance in order to help determine what option best fits their specific needs. This may require negotiation, but an arrangement can be reached that will leave each party satisfied with the end result.
Source: sfgate.com, "Legal Questions on Mortgages Involving Divorce", Daria Kelly Uhlig, Accessed on July 12, 2015