When a couple decides to get divorced, they have to negotiate a divorce settlement to divide their assets and property. This can be a very difficult time for many couples, especially if the couple owned a home together.
It can be a complicated process determining what should happen to the house after the divorce has been finalized. It is important for couples getting divorced to understand their mortgage options before they decide what to do with the family home.
Couples should be aware that they will both remain liable for paying their mortgage, even if their divorce decree dictates that one party will be responsible for the mortgage. Unless the couple sells the property or removes one spouse’s name from the mortgage, the lender can still hold both spouses liable for any missed mortgage payments or foreclosure proceedings.