It’s not unusual for Pennsylvania couples getting a divorce to fight over custody of their children. Many couples, however, might also fight over who gets ownership of the house. That’s because for many couples, their house is their biggest financial asset.
There are a few ways a divorcing couple can handle the issue of the house. One method is to simply sell the house and then split the proceeds after the mortgage is paid off. That may not work for everyone, however, as one spouse may want to keep the house so that they can provide stability for the children.
Another way is for one spouse to buy out the interests of the other spouse. This may mean the first spouse will have to get financing in their name alone if both spouses were on the mortgage. Getting a new mortgage may not be easy since only one income will now be considered by the lender. In addition, the lender may take child support and alimony payments into account when validating income.
Couples also should consider the remaining life of the loan. If the loan is almost paid off, one person may not feel it’s worth it to stay on the loan. If years of monthly payments loom in the future, it may be wise to cash out.
Separating couples need to keep the home loan lender in mind when they are divorcing their mortgage or dividing up other assets. Because property division can often be complicated, spouses may each want assistance from a divorce lawyer who could help them through all the issues, including the division of assets, that are involved in a divorce.