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Should I Remove My Name From a Mortgage After Divorce?
As the divorce process winds to a close, you will be in store for some big changes. One big change will be your living situation. Whether you choose to remain in your marital home or move to a different location, your home routine will undoubtedly be different than it was when you were married. One question that you might have toward the end of the divorce process is if you should keep your name on the mortgage or not. The answer to this question can be complicated depending on your personal situation. Your circumstances after divorce will determine if it is in your best interest to keep your name on the mortgage or not. Consider the following questions to figure out the best choice for you.
Are you still living in the marital home?
Some common reasons for someone to remain in their marital house after divorce are:
- Maintaining routine for the children
- Convenient location of the house
- Can afford to buy out ex-spouse
- Want to maintain standard of living
If you will remain living in your marital home after the divorce and it is your spouse who is moving out, you will be responsible for the home. In most cases, if a spouse moves out of the house, he or she will no longer pay toward the mortgage. Instead, he or she will receive their share of home equity and interest from the home. So, if you decide to continue living in your house, you will probably have to take on full responsibility of the mortgage.
Your circumstances after divorce will determine if it is in your best interest to keep your name on the mortgage or not.
Are you moving to a new home/apartment?
After divorce, many people want a fresh start. Oftentimes, turning a new leaf means finding a new place to live that is not filled with memories from the marriage. If you are moving out of the marital home, there’s really no reason for you to continue paying a mortgage on the house. If you and your spouse are moving, you can split the home equity and whatever you sell the house for. If your spouse is remaining in the marital house, he or she can buy you out and you can have your name removed from the mortgage.
Is your spouse remaining in the marital home?
In some cases, you might want to help your spouse pay off the marital home if he or she chooses to continue living there. If you want to help your spouse with payments, you can leave your name on the mortgage, but be aware that this means you will be making payments toward that house.
Removing your name from the mortgage of your marital house is a personal decision that will depend on your individual situation. There is no right or wrong answer here. If you are looking to discuss your options more with a divorce lawyer or a real estate lawyer, you can contact myself or Lady Closings. We can get you on the right track and help you make the best decision for yourself.