When a marriage is over, both spouses will experience significant changes in their lives. This includes changes to where they will live, how often they will see their children and more. One important financial matter that the spouse must address during or after divorce is their mortgage. A separation of finances and property will require a Virginia spouse to determine what should happen with the family home.
Options for the mortgage and residential property
It is normal for a spouse to want to remain in his or her family home. However, this is not always the most prudent course of action, and it can lead to unexpected complications. The following are options for dealing with the mortgage during a divorce:
- Sell the home, with the two spouses splitting the proceeds.
- Refinance the mortgage in only one spouse’s name.
- Buy out the spouse’s share of equity in the home.
Before making an important decision, however, it is beneficial to evaluate certain factors. First, it is helpful to know the amount of equity in the home, as well as the appraised value of the home. Additionally, it is prudent to consider the tax implications of all decisions.
An eye on the future
A decision made during a Virginia divorce will affect a person long-term. When considering what should happen to the family home or other property division issues, it is beneficial to have the assistance of an experienced attorney. This counsel can help prevent complications and lay the groundwork for a strong post-divorce future.