Jump to Navigation

Dividing real property during divorce

Couples in Connecticut and across the nation who are considering divorce may be interested to know that even if a couple considers themselves separated, they may not be viewed as separate entities by lenders. Even if an individual no longer lives with his or her spouse, that spouse may be able to claim ownership of any property purchased before the divorce is finalized. In addition, the debt that a couple jointly holds may be included in any mortgage that an individual tries to get.

If a couple has had their divorce process finalized, it may be difficult for one party to obtain a house if the other spouse cannot pay the mortgage on his or her own. When a spouse has bad credit or does not have enough income to qualify to pay for the family home on his or her own, he or she may need to use gift money from family members to help the refinancing process along.

This is important because an individual who tries to obtain a mortgage loan after a divorce is final may still have that debt appear on a credit report even if the individual does not have any obligation to make the payments. Therefore, it is critical that a couple either sells the house or that one party refinances the mortgage in order to remove the other party's name from the loan.

Even after a couple divorces, their debt may still be considered jointly held. This means that part of the divorce settlement may need to center on who is going to take ownership of real property owned. The settlement may also determine if the property is going to be liquidated with proceeds split equitably. Those who are going through a divorce and need mediation regarding property division may wish to talk to a divorce attorney who may be able to craft an agreeable arrangement.

Source: Credit.com, "How to Divide Your House in a Divorce", Scott Sheldon , July 09, 2014

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed
Visit Our Main Practice Site

The Law Offices of James A. Cuddy, LLC
525 Bridgeport Avenue, Suite 201, Shelton, CT 06484 · Phone - 203-583-8256 · Toll Free - 866-785-4409 · Fax - 203-513-8673.