Some Pennsylvania residents who are getting a divorce might want to try to keep the family home. Often, this may be for emotional rather than practical reasons, and doing so may not be financially feasible. There are a number of factors that should be considered including the home’s value, whether the person is employed, and whether the person can refinance or buy out the other party.
The house may need to be refinanced, or the person who keeps it might need to reapply for a mortgage. However, there are limits on certain types of income and whether they can be used to obtain a mortgage. For example, if the person is getting alimony, it may be several months before that can be counted as income. Other types of income, such as bonuses, commissions and pay from part-time work, might take a while to approve as well.
Another issue that may arise is that during a divorce, a person may fall behind on payments, and this could lead to a drop in credit ratings. A person in this position might need a cosigner to get a mortgage approved. It is important to prepare by knowing what various lending agencies will require.
A couple may have to divide other property as well. There could be bank accounts, investments, retirement accounts and even a business. A couple might want to negotiate this property division instead of going through the potentially longer and more expensive process of litigation. They may want to have the assistance of their respective lawyers when attempting to reach an accord.