When couples in California and elsewhere make the decision to dissolve a marriage, one of the most common concerns may pertain to how to handle the family home. In some cases, a couple may decide to sell the home following a divorce. However, should one person wish to remain in the home, both parties may need to reach a decision concerning a potential buyout, and a person may also need to refinance the mortgage or apply for a new loan altogether.
In some cases, a significant portion of a couple's wealth could be tied up in the family home. Deciding how to handle this asset can be an intimidating task, as the home may also hold a certain level of sentimental value. Even if an individual is able to come up with the resources to buy out the other person's interest in the home, if there is still a joint mortgage in play, there remains the concern of liability.
In these scenarios, a person may wish to attempt to refinance the loan, or secure a new mortgage entirely. However, following a divorce, one's ability to qualify for a home loan might be affected. For instance, the possible presence of child or spousal support payments could impact a person's eligibility for a set time period. A person may also find it advisable to obtain a divorce decree before attempting to alter a mortgage to avoid potentially detrimental consequences.
How to handle the family home is a topic of concern for many couples who are going through a divorce. For advice in understanding each available option, a person in California could benefit from consulting with a family law attorney early in the process. An attorney can provide a client with guidance in making informed decisions concerning his or her future throughout divorce proceedings.