If you and your spouse get divorced, your home may be an asset that they would like to retain. To offset the value of other assets, you may agree that they can keep it — especially if it doesn’t mean that much to you.
However, the home is seldom purely an asset. It’s usually also a liability because you’re still paying off the mortgage. Be sure that your ex knows they cannot simply keep the home on the same joint mortgage that you used previously. They must get their own.
Why is this important for you?
This step is so critical because you are responsible for the joint mortgage. The court will not care if you and the other person on the mortgage got divorced. They won’t care that your spouse said they’d make all the payments. As far as they are concerned, both of you are responsible for that mortgage and you both have an obligation to pay. Your personal life doesn’t change that.
Therefore, if your spouse pays the mortgage for the first year and then stops, the lender is going to contact you and ask for the money. If your ex has their own mortgage, however, it takes you out of the equation. This process can take a bit longer than simply keeping the same loan, but it’s worth it for you to have that security, especially if there are many years of payments remaining.
Understanding all of the right legal steps
As you can see, it’s important to consider every legal step you take during a divorce quite carefully. Be sure you know what options you have and how they can impact your future.