Pennsylvanians who are considering divorce should be aware of the property-related issues that can arise. Mortgages are often the final financial link between a divorced couple, and the process of asset division can be highly stressful. Both mortgage holders are linked until they decide to refinance the home or sell the property.
Some people who are close to paying off their mortgages choose to wait to remove themselves from the loan. Even amicable divorces can result in tensions regarding the division of marital property. Some couples choose to cohabitate until their mortgage is paid off for the sake of convenience. While it might be hard to understand why anyone would want to keep living with his or her ex-spouse, New York Magazine reported that couples typically do so for their children or for financial reasons.
Individuals who wish to dissolve their interests in a marital property and move on must remove their name from the mortgage or have it refinanced in their name only. Mortgages cannot make up more than a third of an individual’s total gross income, and factors such as alimony and child support are taken into consideration. Equity is another option, in which the couple chooses to divide equity in the home as determined by premarital assets.
Laws regarding home equity vary, and consulting a divorce attorney can help when it comes to equitable property division. A lawyer may also be able to ensure that one spouse is fairly represented and receives an equitable share of the entire marital estate. It is also important to have legal counsel when drafting divorce agreements, such as alimony payments, child support and other documents related to property division.