The complications that arise from a divorce can impact multiple areas of your life. While you will have to adjust to changes in how often you will see your children, you will also have to adjust to where you will live and living on your own. One of the most common questions asked during a divorce pertains to what will happen to the family home, and by extension, what will happen to the mortgage.
It is normal to want a sense of security and familiarity during your divorce. That is why many spouses believe that they want to remain in their home, and they often fight to be able to do so. However, it is not always the most prudent decision to do this, and it can eventually lead to complications and problems. Before making any important decisions for one’s future, it may be helpful to understand the potential benefits and drawbacks of these choices.
Are you leaving or staying?
What will happen to the mortgage depends on whether you or your spouse will remain in the home. If one of you will remain in the home, one option is to refinance the home in the name of that spouse. One spouse may need to buy out the other spouse’s portion in the home, an amount typically based on the value of the home and the amount of equity in it. In order to determine the amount of equity in a home, it may help to have a new appraisal done.
If neither spouse will remain in the home, it is typically best to sell a New Jersey home and split the proceeds. How to split this between the two spouses depends on factors that are specific to the individual situation. You and the other spouse may negotiate terms that are suitable for both of you.
A strong future
When making decisions about your future, you will benefit from keeping your focus on what will make the most sense long-term. It is normal to have strong emotions during this time, but how you feel in the moment is a poor indicator of what will be best for you in the future. Due to the serious nature of these decisions, you will benefit from experienced guidance as you pursue a fair divorce order and reasonable division of marital property.