What Should You Do With Your House Post-Divorce?
Are you and your spouse contemplating to divorce one another? The most important question for a majority of couples who are about to divorce is what they should do with their house post-divorce. In fact, the family house is typically the most important asset to split. Plus, it is not simply a property for such couples. They may have formed a good rapport with the neighborhood, children are contented in the school in that locality and last, but not the least, the couple could have invested a lot of love, energy and time to create a home out of a house.
When one of the spouses wants to retain the house in question even after the divorce, financing is a tool through with one spouse can purchase the share of the other. When you have the right kind of knowledge, it becomes easier for you to protect your financial interests and do whatever is in the best interests of your family. It is always recommended to consult a reputable Orange County divorce attorney whenever you are in a doubt. In order to arm yourself adequately, check out these common questions and know ways of dealing with them.
- You need to finalize your divorce now. However, you are yet to get an approval for your mortgage refinances. Can you protect yourself financially even then?
If you have a need of finalizing your divorce prior to the approval of the mortgage, it is important for you to make sure that your agreement on the marital settlement has a mention that only one of the spouses will refinance the house. However, remember that your liability still exists as far as the lender is concerned. In case you are the one who will give up the home, your partner should put his or her signature on the Deed of Trust for Securing Assumption. Thus, you can enjoy the right of foreclosure and reclaim ownership when the other party is not able to refinance and becomes a defaulter on the mortgage. Once your divorce gets finalized, you should request your lender to inform you if there are incidences of missed payments.
- Do you have to refinance your home in a divorce? Can you remove the name of one of the spouses from the property deed?
It is a common misperception leading to severe consequences. When you put your signature on the Quit Claim Deed, your name can be removed from the said deed. It also signifies that the ownership of the home does not belong to you anymore. However, it is distinct from the mortgage taken. To put it simply, in case you and your spouse had taken the mortgage for your house together, you still own liability to pay off the debt.
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