On behalf of South Tampa Law Group posted in property division on Friday, December 1, 2017.
For many couples, the family home is the most valuable asset. During a divorce, an individual will need to figure out with their ex-spouse how the house will be handled. Who will stay, who will go, or will the home be sold are all questions that can be looked at. Property division can have far-reaching impacts on an individual’s lifestyle, so for many Florida residents, this is a critical part of any divorce.
A person who decides to leave the house to the spouse may want to take precautions with their credit. Simply taking one’s name off the deed to the home does not automatically take away one’s responsibility for the mortgage. If one’s name is left on the mortgage, he or she may be responsible should the ex miss payments. This is why, many times, individuals choose to make refinancing the mortgage a condition of giving the house to the spouse after the divorce.
There are other reasons to refinance at the end of a marriage, including buying out one’s spouse, having access to a cash flow or making needed repairs. Since many people may find themselves with less funds on hand after dissolving the marriage, a refinance could potentially help to lower payments. A divorce can give a person an opportunity to review finances and start anew, and a careful analysis can show where one’s efforts are best applied.
A common recommendation from legal and financial professionals who deal with individuals facing divorce is to keep emotions at bay. If a person is able to see the practical necessity of planning during a divorce, property division can be approached like a problem-solving exercise and not a competition. In Florida, a family law attorney could offer assistance to individuals going through the process.
Source: Forbes, “Til The House Do Us Part: The Top Five Reasons To Refinance After Divorce“, Jason Crowley, Nov. 27, 2017