Marital home mortgages during and after divorce.

In many divorces, the divorce agreement will call for one or the other spouse to refinance the marital house. As a mortgage is often the largest single debt that is likely to appear in your name, or on your ex-spouse's name, it is important to consider what might happen and what can be done.

One misconception that is commonly held by many people embarking upon a divorce process is that the court has the power to take you or your spouse off of the mortgage. This is not true. The court can order one party to assume liability for the mortgage, but it is ultimately up to the lender whether or not they allow the other party to refinance and relieve the other ex-spouse of the liability.

The decision about creditworthiness is made by a lender, and is generally made through a refinancing process. If the ex-spouse who is seeking a refinancing is not considered to be creditworthy by any lender at any price, even with a third party co-signer, the remaining spouse will not be removed from the mortgage. When the party is not removed from the mortgage the party who was supposed to assume liability for the mortgage can still be held liable for any damages suffered by the innocent party.

Consider all the possibilities involved above regarding credit, and the rate or cost of that loan, plus possible co-signers before executing any divorce agreement.

If, after your divorce, the payments are consistently late, or the home has been foreclosed, you will have suffered harm in the way of diminution your credit score if your name is still on the mortgage. This will cost you in the future if you ever need credit. In addition to asking the court to hold your ex-spouse in contempt, you may also be able to seek damages that were caused by their non-compliance.

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Hire an Experienced Memphis Divorce Lawyer

At The Burdette Law Firm we are competent and caring lawyers when dealing with divorce, and will provide excellent legal divorce advice. We give our clients a great deal of information on divorce so they can have the proper understanding of divorce law to make important decisions. Getting divorced is an emotional process and we always strive to ease the stress during this difficult situation. A divorce is also a financial process. The valuations, incomes and sums involved in property division, alimony and support should be carefully reviewed by someone like a Certified Public Accountant to insure accuracy, and to protect you from any attempt to hide assets or income.

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Christina Burdette

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