Divorce can be messy emotionally, and it can also unfortunately wreak havoc on one's finances. One of the biggest assets shared by a couple in New Jersey is the home mortgage. Addressing the mortgage properly during the divorce process may help both parties to go their separate ways in the best financial positions possible.
Selling the martial home is usually the best option during divorce. This is easier to do if there is equity in the home, in which case the house can be put on the market and sold with the resulting profit being split. Understandably, selling the house is not the easiest move from an emotional standpoint, especially if the couple's children were reared in the home.
If one of the divorcing parties wishes to stay in the house, then the home can be refinanced under this person's name. To do this, the person will have to qualify for refinancing the house with just his or her income. It is best not to leave one's name on the mortgage and assume that one's future ex will cover it, as both parties are completely liable for the monthly mortgage costs every month from the standpoint of the mortgage company.
Going through a divorce in New Jersey can understandably be stressful, with the decisions made during the divorce having long-term implications. An applied understanding of the law may help people to make informed decisions when it comes to matters such as asset division. Legal guidance may enable them to fight for their rights while respecting the other party's wishes.
Source: time.com, "What Happens to Your Mortgage in a Divorce?", Ashley Eneriz, March 29, 2016