The real estate market is in shambles.
Many homeowners are upside down in their mortgages.
Husband and Wife really can just barely keep up with mortgage as it is.
After divorce, they will have to support two homes on the same incomes.
A lot of divorcing couples shoot from the hip when it comes to dealing with their house and debts in settling (or litigating) their divorce.
One expert warns that couples are not truly divorced if they are still tied to a mortgage and other debt with their ex.
Cold, hard fact: joint debt means joint liability.
If either borrower defaults, both will have problems that they didn’t bargain for.
Like damaged credit, bankruptcy, foreclosure, etc.
The only way to eliminate the risk of the unknown and unforeseen is to sell the house before the divorce is final.
If one party wants to stay in the home, the cleanest way is to buy the other out and refinance their name off of the mortgage.
And nothing should be taken for granted. The home should be thoroughly inspected and appraised to make sure that the buying spouse understands what they are signing up for.
Whether selling the home before the divorce is final works for you or not, one lesson drawn is surely valid: when it comes to financial and legal obligations, you can’t do too much due diligence in your divorce.
Read more in this Santa Clarita Valley [CA] Signal article: Divorcing your house along with the spouse.
