Pennsylvania residents who are going through a divorce have several options for dividing property. One of the challenges that faces many couples during the process is how to buy out the former spouse without the burden of a mortgage. Changes that take place before the legal separation or finalized divorce often cause unanticipated problems. For example, if one spouse were to buy property before the divorce decree is issued, the other spouse may have to sign a quitclaim deed formally releasing any claims to the property.
One common problem occurs when a couple is officially divorced, but one spouse lacks the funds to buy out the other. When a spouse is unable to receive a payoff, they are still legally responsible for their share of the mortgage. Many people in this situation are concerned about the impact on their credit score if their former spouse does not pay the mortgage on time. These types of concerns are a leading reason for home sales or spouses being paid off after the end of a marriage.
It is common for one party to continue living in the home even though the other vacates the property. The separation agreement and the final divorce decree help determine how property division occurs. Many couples who divorce on amicable terms are able to reach an agreement that works well for both parties and is approved by the court.
Asset distribution may be one of the most contested issues when a marriage fails. Legal representation may be an advisable choice when the parties have difficulty reaching an agreement. Because Pennsylvania courts follow the principle of equitable distribution, it may be important for each party to have separate legal representation.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, October 31, 2014