When a Wisconsin resident is awarded the family home during a divorce, there are a lot of serious questions they will need to answer. They will need to look at who will live in the home and who can afford to actually stay in it. These are serious matters that need to be considered. If the decision is not to sell the home, a new group of options open up.
The first option is to keep the joint mortgage of the home. In this scenario, both spouses are liable for the joint mortgage. Understandably, this is a scenario where trust is a must. If one former spouse opts to not pay the mortgage at any given time, it could damage the other’s credit rating.
The second option is to refinance the joint mortgage. This would be where the person who is going to keep the home refinances the mortgage in their name. This makes them solely responsible for the mortgage.
The third option involves assuming the original mortgage. In order for this to be an option, the mortgage must allow for loan assumption. There’s a number of reasons why this could be a good idea. One reason could be that the original joint mortgage has good terms, like a low interest rate. Refinancing the mortgage could lead to a higher interest rate.
Another reason why assuming the loan may be a good idea is because it is often cheaper. In some cases, it can be done for less than $1,000. If assuming the loan is done correctly, it can save money while at the same time separating the former spouse who has ownership of the home from the existing joint mortgage.
Family law attorneys may be able to offer assistance to clients who are determining what to do with a family home. They may give their clients advice on laws pertaining to joint property, joint assets and joint debt. They may be able to provide their clients with advice on financial matters associated with divorce. If necessary, a family law attorney may represent their client in court.