News / Finance
Refinancing is a Must When You Divorce
Know Your Options When It Comes to Your Property
Three Basic Options
1. Sell the home and split the proceeds.
-Ask us to analyze your home’s market value, then estimate—after selling expenses—how much the home sale will net.
-Be careful not to assume there will be a 50/50 split of the sale proceeds. Your share may depend on your divorce settlement, the source of the original down payment money, or the property laws in your state.
-Most states follow equitable distribution principles which may favor one spouse over the other, while some are community property or common law states that often result in a 50/50 split.
2. Buy out your spouse’s share of the home.
-First take into account the size of the home, utilities, payments, and family needs. Does staying in the home truly make sense?
-The key is refinancing; crunching your income numbers is the answer, and we can help.
-If you can afford the mortgage payments, upkeep costs, and also buy out your spouse, then this is where you will want the advice of a trusted mortgage professional who can help you get into a loan program that both makes sense and is the best deal possible for you and your needs.
3. Retain joint ownership of the home.
-Even though only one partner will occupy the house this leaves things pretty much alone. This can work if both parties can continue to cooperate after the divorce.
What if you do want to purchase another home before the divorce is final? This may be possible, but be aware that your spouse may have a martial interest in your new property, and it will need to be handled by your attorney with a Quit Claim Deed being given from your ex-spouse to you. You will also have to qualify with the full debt from the current home, because there would not yet be a final divorce decree assigning ownership. Be very careful with this situation, especially as the financial situation you expect, may not be the final result, once the decree is entered.
Take the time to talk with your mortgage broker in conjunction with your attorney during this process and before you decide to start looking at a new home can help eliminate many of the concerns and questions that often surface in these situations. This may be a very difficult time, and you have many decisions to make. Solomon Financial provides a free financial consultation, credit check, and mortgage strategy review—so that you have the answers and information you need to make good decisions.
It is important to seek qualified legal counsel when going through a separation or divorce.
For more information, contact:
Solomon Financial
Fred Solomon
(800) 811-7709
1. Sell the home and split the proceeds.
-Ask us to analyze your home’s market value, then estimate—after selling expenses—how much the home sale will net.
-Be careful not to assume there will be a 50/50 split of the sale proceeds. Your share may depend on your divorce settlement, the source of the original down payment money, or the property laws in your state.
-Most states follow equitable distribution principles which may favor one spouse over the other, while some are community property or common law states that often result in a 50/50 split.
2. Buy out your spouse’s share of the home.
-First take into account the size of the home, utilities, payments, and family needs. Does staying in the home truly make sense?
-The key is refinancing; crunching your income numbers is the answer, and we can help.
-If you can afford the mortgage payments, upkeep costs, and also buy out your spouse, then this is where you will want the advice of a trusted mortgage professional who can help you get into a loan program that both makes sense and is the best deal possible for you and your needs.
3. Retain joint ownership of the home.
-Even though only one partner will occupy the house this leaves things pretty much alone. This can work if both parties can continue to cooperate after the divorce.
What if you do want to purchase another home before the divorce is final? This may be possible, but be aware that your spouse may have a martial interest in your new property, and it will need to be handled by your attorney with a Quit Claim Deed being given from your ex-spouse to you. You will also have to qualify with the full debt from the current home, because there would not yet be a final divorce decree assigning ownership. Be very careful with this situation, especially as the financial situation you expect, may not be the final result, once the decree is entered.
Take the time to talk with your mortgage broker in conjunction with your attorney during this process and before you decide to start looking at a new home can help eliminate many of the concerns and questions that often surface in these situations. This may be a very difficult time, and you have many decisions to make. Solomon Financial provides a free financial consultation, credit check, and mortgage strategy review—so that you have the answers and information you need to make good decisions.
It is important to seek qualified legal counsel when going through a separation or divorce.
For more information, contact:
Solomon Financial
Fred Solomon
(800) 811-7709
