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May I keep the house and make mortgage payments after a divorce?

On Behalf of | Jan 27, 2022 | Family Law

Divorce may include agreeing to take over mortgage payments or using your home’s equity to buy your soon-to-be ex-spouse’s fair share. To keep the house, you may apply for a new home loan or refinance your current one, as noted by The Mortgage Reports.

When submitting mortgage applications, lenders check your income and credit score. If you earn enough as a single individual, you may qualify for a new loan. Without sufficient income, however, you may need to negotiate mortgage payments as part of your divorce decree.

How may an ex-spouse assist with a mortgage?

A divorce often includes discussing financial support for an ex-spouse and a couple’s children. Without children, Pennsylvania law allows a judge to order alimony only when necessary. An inability to return to work after a long marriage, for example, may justify financial assistance from an ex-spouse.

You could use alimony to cover your mortgage payments. If you have full custody of your children, the court may award financial support that includes the cost of their housing.

Could I offer to buy out my ex-spouse’s share of the home?

If you wish to remain in your home, you may discuss taking ownership when you negotiate your divorce settlement. Pennsylvania law requires dividing marital property fairly. Accordingly, you may negotiate a fair payment to buy your ex-spouse’s share of the home.

Without cash, you may consider giving up your ownership of other shared assets such as a vacation property or business. You could also raise cash from your home’s equity value when refinancing an existing mortgage.

You may have workable options to keep your property after a divorce. Your home’s equity and mortgage payments could factor into a divorce settlement. If you need to take on a new loan, financial support from your ex-spouse may help you afford the payments.