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How can divorce affect your mortgage?

On Behalf of | Mar 22, 2022 | Divorce

Are you thinking about ending your marriage in California? This is a decision that you should never take lightly. There are many factors that you will need to consider before you make your final choice. One of them will be the effects that ending your marriage could have on your assets, which includes your mortgage.

What usually happens to the mortgage?

You should be aware that divorce has no effect on the financial commitment that you have made to a lender in the form of a home mortgage. If both of your names are on the mortgage, you are both still equally responsible for meeting your obligations.

If you do decide to divorce, you have a number of options to consider. You can decide to sell the home and split the proceeds. This gets you both off the financial hook. It also avoids arguments over who gets the house.

One of the spouses can decide to buy the home from the other. This will require a renegotiation of the mortgage so that the other party can be removed from the documents.

You can also decide to stay in the home while relying on your former spouse to continue making the payments. This usually occurs when children are involved. This can be a very risky option that may end in disputes requiring the intervention of a court.

How can you solve this issue amicably?

There are a number of steps that you can take in order to end your marriage in an amicable fashion. One of them may be to consider mediation.

The mediator that you work with can help you to arrive at a settlement that meets the needs of both parties. This can include matters related to your home and other properties and assets.