Focusing On Family Law – And You
The family home is the most valuable asset that many California couples own. Real estate of any kind is not cheap these days, especially in California. As a result, most people have a mortgage to finance the purchase of their home.
What happens to the family home and its mortgage when a married couple decides to divorce?
Mortgages and divorce
In reality, there are typically only a few limited options for divorcing spouses who find themselves in this situation.
The first and probably the easiest option for divorcing couples is to sell the home and split the profit.
However, our readers in California probably know that in today’s real estate climate that option could be easier said than done. The once red-hot housing market has cooled over the past few years, and selling property isn’t easy these days, and of course there may be sentimental and logistical elements to consider with this option.
Another option is for one of the spouses to keep the home and, most likely, refinance the mortgage in their name only. However, the cost of this option can be prohibitive, especially with today’s higher interest rates.
Yet another option could prove more complicated: keeping the property as a jointly-owned asset by the divorced parties even in post-divorce life, and using the property as an investment.
This might be workable if the divorcing spouses are somewhat amicable but, in many divorce cases, that isn’t true.
Ultimately, finding a solution for dealing with the family home and mortgage is never easy, and recent events have made it more difficult. Homeowners going through a divorce should thoroughly examine all their property division options.
