Pennsylvania couples who are getting a divorce and who own a house together have a few options. Some people may not want to fight over the house. Some couples continue living together and paying the mortgage despite the divorce.
To remove the name of one spouse from the mortgage, it is necessary for the other spouse to refinance the loan. A lender has to recalculate the mortgage, and it may be necessary to make another down payment or get a cosigner. A quitclaim deed is then necessary to transfer ownership.
Another option might be coming to an agreement over equity. In its most basic form, equity is the value of the house minus what is left on the mortgage. However, how it iwll be divided in a divorce could be based on a number of factors including whether or not there is a prenuptial agreement, whether and how improvements were made to the property, and premarital assets.
People who are getting a divorce might want to think the issue of the family home over before proceeding. Points to consider include whether or not the divorce is likely to be amicable and whether it is financially feasible to sell or refinance the home. Those who do want to keep the home in a divorce might want to discuss the situation with their attorney. It is important to keep in mind that although the home may represent a tangible asset, it might also end up being costly. Being able to afford a house is not just about paying the mortgage. Insurance, upkeep and other expenses may result in a person struggling financially. After discussing assets and liabilities with an attorney, a person might be able to develop a strategy for managing finances during and after a divorce.