Making a decision regarding the marital home in a Pennsylvania divorce can be an emotional experience for couples, especially if their children were raised in it. However, ending a marriage can have a major impact on a person’s finances, meaning retaining ownership of the home may not be financially feasible.
Before a person can refinance the mortgage, most lenders will need evidence of income. While alimony and child support can count as income, the person could need six months of receipt. Further, the person will need to have the cash for a down payment and have an appropriate credit score to be eligible for a loan. There are generally options for those who have a minimum credit score of 580, though the higher the person’s credit score the easier it is to refinance.
Further, the person who wants to retain ownership of the home should be prepared to buy out the former spouse’s portion of the home. This could potentially take a significant amount of time and would require the former spouse to have to wait. If the person cannot afford to do this, it may be in the person’s best financial interest to consider selling the home in order to find housing that is more affordable based on his or her new financial circumstances.
The divorce process is never easy, especially if the two parties are having trouble working together to come to a solution. The asset distribution process can be a particular point of contention, especially if one person is dead set on retaining ownership of the family home. However, if the other party is open to postponing the sale of the home so that the children can continue to have stability during the divorce, a family law attorney could draw up negotiations that allow the person to keep the home in exchange for other marital assets.