Selling the marital home in a divorce

| Sep 1, 2020 | Real Estate |

People in Georgia who decide to divorce will have to contend with how to divide their marital assets. Property division in a divorce is among the most contentious areas that might arise. One of the biggest decisions that a divorcing couple might have is how to handle the marital home when both of their names are on the title and mortgage. Couples have a few options with what to do with the home.

Selling the home

Some couples agree to sell the marital home and divide the proceeds that they receive from it. While this might be a good way for both spouses to get the value of their separate interests from the property, both spouses will have to agree to sell it. In some cases, one spouse will be attached to the marital home and will want to keep it. The other spouse might allow him or her to remain in the home in exchange for keeping a larger share of some of the other assets.

Selling the some to the other spouse

One option is for one spouse to sell the home to the other spouse. Asking the other spouse to refinance the mortgage in his or her name can help to prevent some problems. Even if a spouse is awarded the home in a divorce, the mortgage lender can still go after the other spouse if the mortgage is not paid as agreed by the spouse who remains in the home. By asking for the other spouse to refinance the property, the spouse who is not staying in the home can be protected in the event that the remaining spouse fails to pay the mortgage as agreed.

Mortgage lenders are not parties to a divorce and are, thus, not bound by the divorce decree. Because of this, a spouse who will not stay in the family home will need to take steps to remove his or her name from the mortgage. A spouse who wishes to remain in the family home may want to talk to an attorney who is experienced in real estate law and divorce law for help with refinancing the mortgage in his or her name alone.

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