When getting divorced, many spouses in Florida want desperately to stay in their homes. Some wish for this for the benefit of providing stability to their children during a time filled with so many other changes. This is certainly a reasonable desire for a legitimate purpose but it may not necessarily be in a person’s best interest financially to do this.
As explained by Bankrate, if one person is going to remain in the home and assume financial responsibility for it, that person should get their own solo mortgage rather than keeping the existing joint mortgage. Even if a divorce decree identifies one party as the person responsible for the home, the lender may still consider both persons named on the loan as responsible for any debt associated with that loan.
If the spouse that keeps the house does not remain current on payments, the other spouse could find their credit report showing negative marks for the late or missed payments. This can happen even if they have signed away their ownership in the home via a quit claim deed.
The Mortgage Reports suggests that a refinanced loan may be able to provide additional cash to the spouse keeping the home to pay off the other spouse. The amount of equity in a home, a person’s post-divorce income and their credit score will all play into the ability to get a new mortgage. In some situations, it can be harder for a newly divorced person to get a mortgage on their own as credit and income both may suffer during a divorce.