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Considering a divorce brings up many questions, including questions about how to divide assets. “Divorce is nearly always emotional and determining what to do with the marital home can be one of the most emotional issues in the divorce. The marital home is oftentimes the highest valued asset to deal with in a divorce. To help you make smart financial decisions, put your emotions aside when making those decisions. Do the math and look at your financial picture 5, 10 and 20 years ahead when making all of your financial decisions in your divorce. Remember that emotions don’t pay the bills, money does.” – Karen Mendez, Certified Divorce Financial Analyst (CDFA™).
“Each client is different, with varying concerns and financial situations. It is important to find out what those needs are, what is possible in terms of choices for that client and to then make decisions accordingly. If we are talking about housing choices in Carmel Valley in particular, there are several different types of housing that could meet a client’s needs. It’s important to look at all of the options.” –Frann Setzer, Esq., Certified Legal Specialist-Family Law, Lewis, Warren & Setzer, LLP and Carmel Valley resident.
You have several options in handling a property in divorce:
Selling the home may be the cleanest option available. Here there is no further risk of possible home mortgage credit damage to either party.
When considering a buyout, a refinance is the cleanest option in order to release the spouse from the existing mortgage. However, it is not necessarily required. You will want to do some homework in advance to understand the current loan qualification requirements to make sure it is an available option. Will you or your spouse be able to qualify for the mortgage on your own? Can alimony and child support income be considered? Alimony and child support can be considered in qualifying once a court order and consistent monthly (documented) receipt has been received for at least 6 months and will continue for 3 years. What happens if the existing mortgage stays in place? Call for further details on how this can impact you.
The third option is often not recommended as there are many unknowns in the future. Also, if joint ownership is maintained, you could be held responsible for the entire payment if trying to qualify for future financing. If either spouse does not make timely mortgage payments, both spouses credit would be impacted.
“It is always prudent to obtain as much information as possible early in the dissolution so a party can determine how to realistically approach asset division. Going into mediation, settlement discussions or trial with realistic goals will result in a much better outcome.” –Meredith G. Lewis, Esq. Certified Legal Specialist-Family Law, Lewis, Warren & Setzer, LLP.
If you would like straight forward, comprehensive feedback on the home financing options available, please call Julie Ozanich at 858-369-7510. NMLS#: 479603.
With a mission to provide a higher standard of mortgage lending services, Julie began her career in mortgage banking in 1990. To date, Julie has successfully closed over $1 billion in mortgage loans and helped over two thousand customers achieve their mortgage goals. Program availability may differ slightly in different states. Terms may vary. Subject to change without notice. Bank of Manhattan is not affiliated with nor endorses The Carmel Valley Life. NMLS# 401422.