Home Ownership and Mortgage Considerations after Divorce

Blue and Gray Painted House

The goal of divorce mediation is to reach a solution that is agreeable for both parties. One
common issue during legal separation in NY that is difficult to handle for both of the former
spouses is house and mortgage. Here are some options that they can consider.

Your Spouse Wants to Buyout

A method that people use is for one spouse to buy the other out. One spouse refinances the
home and ends up obtaining the funds from the payout.

The spouse that pays off the house is now responsible for the existing mortgage. The spouse
that has custody of the children usually ends up purchasing the home in couples that have
children.

Determine the Value of the Marital Home and Obtain an Appraisal at the
Fair Market Value

It is essential to know the value of your home if you are considering a buyout during your no
fault divorce in NY. Couples often seek the help of a professional real estate appraiser to get an
accurate value of the house. There may be a cost of hiring an individual, but it is worth it
considering the disagreements that can arise later on.

Removing Your Name from the Mortgage

It is essential for you to remove your name off your property if the spouse agrees to buy it off.
The lender may still hold you accountable if your spouse does not make mortgage payments
after the divorce period. Make sure you inquire about NYS divorce laws when dealing with this
task.

It can become challenging to get your name off the mortgage, especially if your spouse is
behind the payment of mortgages. In cases such as this, it is always a good idea to sell the
home.

Selling the house is the final option in deciding the “who gets what’ debate. This is an option
worth considering, especially if the family has accumulated debt that they cannot pay off.

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