On behalf of North Tampa Legal Group posted in property division on Thursday, April 20, 2017.
It is a very common thing for a resident in Florida to wish to keep a family home when getting divorced. People can understandably have strong emotional ties to their homes. This can be even more true when a couple has minor children and there is a desire to stay in a home for the sake of providing consistency and stability for the children. If you are in such a situation, you should know that there are some very specific financial realities that must be addressed when doing this.
Fox Business explains that one of the most common ways people retain homes after a divorce is through refinancing the original joint mortgage and obtaining a new mortgage as a single person. The spouse who then leaves the home may be paid for his or her portion as per any divorce agreement. This process might sound great in theory but it is important to know how and when to initiate a refinance for this purpose.
If your divorce is already underway, you may be well served to let it complete before trying to refinance so that when a lender evaluates your financial picture, any debts that will be paid off during your divorce or transferred to your spouse do not work against you. You will also want to keep a good eye on your credit before, during and after your divorce.
If you would like to learn more about your options for your family home and associated mortgage when getting divorced, please visit the asset and debt splitting page of our Florida family law website.