Getting a divorce can be a difficult process. Determining who gets the community property is a hard thing to figure out, though most property is split evenly unless there is a prenuptial agreement. However, if there is a home with a mortgage, who pays for the house?
Who Is On the Mortgage
The question is a moot point if only one name is on the mortgage. If this is the case, the person who is named on the mortgage is responsible for paying for the house. When both the husband and wife have their names on the mortgage, they are both responsible for paying off the mortgage. The only way to get out of this responsibility is for both parties to agree to sell the home. It is important to know that you may have trouble getting or
refinancing other mortgages if your name is still on a previous mortgage with your ex.
The mortgage still needs to be paid during the divorce process. Any payments that are not made could initiate the foreclosure process. You should be aware that a foreclosure would have a devastating impact on your credit score, which could drop by several hundred points. It is much easier to pay your mortgage while trying to recoup your money in the divorce settlement.
Who Pays the Mortgage in a Divorce
While the divorce is being finalized, each party should continue paying the mortgage as usual. Once the divorce is finalized, there should be language that clearly spells out who is responsible for paying the mortgage from now on. This doesn’t mean that the bank won’t come after you for missed payments even if your ex-spouse agrees to pay. It simply means that you may have the ability to take your ex to court if you suffer financial hardships due to non-payment.
Divorce can be a complicated process. Make it a little easier on yourself by sorting out who will pay the mortgage as soon as possible. The last thing you need is ruined credit to go along with your relationship troubles. If you’re going through a divorce, get an agreement regarding future payments as soon as possible.