Divorce & The Mortgage - Where To Start

Divorce and separation often present challenges that the couple never expected, and one of those challenges is what to do with the mortgage. 

No matter your stance on the divorce, the first step is to talk to your ex and figure out what they want to do.

• Do they want to keep the house? Do you?
• Would you both like to keep it as an investment property?
• Do you want to sell it and split the profit?
• Another solution?

Once these questions have been answered and agreed upon, you can move forward.

Next, you'll want to get your home appraised through a realtor or appraiser, and their information will give you a better idea of what your options are in comparison to the balance on the mortgage. 

Also, consider bringing in help. Divorces are complicated, and a mediator can help you make fair and equitable decisions.

Then, and only then, should you decide what to do with your mortgage. Many people choose to:

• Sell the house, pay off the mortgage, and keep the remainder for yourselves to split as agreed upon. 
• Refinance the home. I recommend doing this only if one person can handle the mortgage payments on their own without the other. 
• Keep the house and mortgage as-is. If the home is important to one person over the other, consider letting them keep the house- providing they agree to keep up with the mortgage payments. 
• Another option is to keep the house and use it as a rental property. That way, you can collect rent to cover the mortgage while still building equity. The downside, though, is that you'll have to work with your ex. 

Divorces are messy, complicated things, but your mortgage doesn't have to add stress to it! If you need more clarification or you have specific questions, contact us for a consultation.

My team and I are here to help make this already painful process as smooth as possible.