Arizona couples who own a home together may be interested in an article discussing some of the issues related to property that might come up during a divorce. If the correct steps are not taken, one of the parties may be stuck paying for a house that they no longer live in.
When a couple that owns a home together divorces, one of the parties is often allowed to keep the house. Though they may be legally divorced, this does not remove the party that does retain ownership from responsibility for making mortgage payments. The home-owning party must refinance the house in their own name in order to remove the non-home-owning party’s responsibility under the mortgage. If the home-owning party fails to make these payments, the delinquency will most likely show up on the other person’s credit report. Additionally, if that other person attempts to purchase a new home, they may have more difficulty due to this existing debt obligation.
The person who needs to refinance the home may need to have a good credit rating in order to be approved. Couples should check on their individual credit situation in the months prior to getting divorced. In the event that the home-owning party cannot refinance, the other option is to sell the home. These are generally the only ways to remove the other party’s responsibility for the debt.
Property division is just one of many issues that can crop up during and after a divorce. An attorney who practices family law may be able to help navigate these issues and negotiate a settlement between the former couple. The attorney may then be able to draft a divorce settlement that covers such matters as child custody, visitation plans and spousal support.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, July 09, 2014