There are many decisions to be made when a decision to end a marriage is made. The division of property during a divorce can take a major emotional and financial toll on all parties. The fate of a home and the process of getting a new home can be particularly complicated for Pennsylvania couples as they navigate a divorce.
The process of how to split a house and the resulting impact varies according to whether a couple is just separated, in the process of divorce or has finalized a divorce. If still married, one party can surely go out and buy a home of their own. However, the other spouse — a soon-to-be ex-spouse — will need to sign documents releasing them from any interest in the new property being acquired.
If a couple is divorced, the spouse staying in the home may not be able to refinance and take on the mortgage themselves, meaning the other spouse may still be listed on the mortgage. If that is the case and the spouse still listed tries to buy a house, their credit related to the old property may derail the process. The party living in the house must sell or find a way to refinance to release the other party from any responsibility.
For many Pennsylvania couples seeking a divorce, trying to decide who will stay in the house may be the most difficult decision. However, the aftermath of a mortgage and refinancing may add to the financial complications of any split. For couples trying to split amicably, weighing all the options related to a house, credit ratings and the financial reality of living apart may help both parties move forward with fewer complications.
Source: foxbusiness.com, “How to Divide Your House in a Divorce”, , July 14, 2014