In many divorce cases, the most thorny property division question is: what to do with the marital home?
That is especially likely in a depressed real estate market like the current one.
One commonly agreed to option is for the spouse who wants to remain in the house to refinance the other spouse’s name off the mortgage.
But what if the occupying spouse doesn’t have sufficient income or credit to accomplish what was agreed to?
Well, that may depend on what state you live in.
A Virginia women is apparently facing jail time for not being able to refinance as agreed.
Due to the downturn in the real estate market, she also has been unable to sell her way around the refinancing obligation.