Couples in New Jersey understand that divorce means dividing up assets. What people are less clear on is the division of debts like mortgages. Even when a judge assigns responsibility for a mortgage to one party, the lender may still look to both spouses for payment. If they each signed the contract, the lender views them as jointly responsible. Luckily, there are a few different ways around this issue.
What to do if you get the house
The division of property in a divorce is often complicated. Even getting the house in the divorce can be a mixed blessing. For many people, especially younger individuals, it’s not feasible to make mortgage payments on a house because it’s too expensive to continue making those payments on just one income.
However, in 2020, mortgage rates have reached historic lows. If there was ever a year to refinance, now is that time. Refinancing will also have the benefit of transferring responsibility for the payments to one person. The new loan will only be in the name of the person agreeing to pay it.
The other option is to sell the house. Given the strong market for housing, it’s a good time to be selling. It’s very likely that sellers in 2020 will make a profit on the sale of a house.
Property division often creates scenarios that require difficult choices. Anyone getting divorced may want to seek advice from an experienced attorney and also consider consulting professionals such as certified divorce financial analysts. CDFAs help their clients make budgets for life after divorce. A family law attorney may recommend these professionals as a great resource for anyone who is exploring the issue of what to do about their mortgage.