There’s More to Divorce Financing Then You May Think
- First Marriages End in Divorce 45% 45%
- Second Marriages End in Divorce 60% 60%
- Third Marriages End in Divorce 70% 70%
If you are facing a divorce – whether you own a home or not, I strongly encourage you to consult with me before taking any action. That’s because there are profound implications on your ability to obtain financing the moment you file for divorce. As well, it’s critical that we discuss the potential issues surrounding your credit, assets, and liabilities before any untoward events occur.
The consultation is free and will provide you with specific recommendations that will allow you to move through this aspect of your divorce with confidence.
Here are some core ideas to consider:
- If one of you is planning to keep the home, refinance the departing party off the mortgage before you file for divorce. That keeps any financial elements of the eventual separation out of the equation.
- After filing for a divorce but before it’s finalized, it is possible to obtain a mortgage if the attorneys can provide the agreed-upon terms of the eventual separation agreement.
- Once the divorce is final, the separation agreement will delineate who is responsible for each of the debts listed in the financial statements. Here’s a really important thing to know: even if the court says your ex-spouse is responsible for a debt, if it is a joint liability, you are still on the hook and your credit and financing capacity will be impacted.
Divorcing Your Mortgage