What happens to your mortgage and home after a divorce?

On Behalf of | Jul 18, 2019 | Family Law |

In Indiana, when couples decide to call it quits, there are many things that must be divided. From custody to money to property, the process can be extensive and tense. One major thing that many people worry about is the mortgage. If you both own a portion of the home but are no longer married, you have several options if you choose not to be married any longer.

According to Bankrate, much of the decision is made depending on how the property was titled and financed. If only one spouse has their name on the title and the loan, they are solely responsible for selling and payment, but they also get all the equity from the home unless specified in the divorce.

Many want to keep the family home, particularly when children are involved. If your kids are already struggling from the changes, it can be hard to move them into two entirely new homes and you may want to keep things as consistent as possible. This involves keeping the home.

If you choose to keep the home, it is a good idea to refinance so the spouse who keeps it is responsible for the debt. If you move out but keep your name on the loan, you will be responsible for payments whether you are living there or not. If the spouse keeping the home cannot get a loan on their own or cannot afford the payments, you may be forced to sell.

Once the home is sold, the equity can be divided between both owners if both names were on the title. This provides each party a fresh start and a way to move forward with no connections. If you do not get along with your ex and do not want to keep in contact with them, this may be your best move.

This information is for educational purposes and should not be interpreted as legal advice.