Keeping or selling your home in a divorce
If you and your spouse have been talking about getting a divorce and you own a home together in New Jersey, you might be wondering how to decide what you should or should not do with your home during or after your divorce. Many people want to try and keep their homes, especially if they still have children who live at home. This is understandable given the emotional attachments often associated with a home. However, this may not be a wise option from a financial perspective.
The Mortgage Reports explains that if one person keeps the home, it is preferable for that person to get a new mortgage that is only in their name instead of allowing an existing joint mortgage to remain in place. The reason for this is because it is the only foolproof way to eliminate financial liability for the other spouse.
If the joint mortgage remains in effect and the person who is supposed to make the payments misses or is late on any payments, both people’s credit may reflect these actions. Any foreclosure activity would also be provided to both credit reports. There is a huge risk to the non-responsible party of allowing the joint mortgage to stay.
If you would like to learn more about the factors to assess when deciding if you can or should keep your family home after you get divorced, please feel free to visit the mortgages and property division page of our New Jersey family law and divorce website.