When you are a homeowner and your New Jersey marriage ends, one of the many things you may need to think about is how to handle the mortgage moving forward. There are many considerations involved in this decision, but one of the first things you need to determine is if you or your ex wants to try to keep the home you once shared together.
The Motley Fool notes that anyone who takes out a joint mortgage with their husband or wife is financially responsible for that mortgage before and after a divorce – unless you make other arrangements. Many former couples choose to handle their joint mortgages by taking one of the following two steps.
Selling the home
If neither of you has any deep desire to stay in the home you once shared, then it may benefit you both to list it. When it does sell, you might be able to pay off the mortgage and then divide any remaining profits made on the sale between you. This may come in handy if you need to come up with enough to cover a down payment or security deposit on a new place to live.
Refinancing the mortgage
If you want to stay in the home, or if your ex does, the next step involves whoever wants to keep it trying to qualify for a new mortgage on his or her own. If you are the one who wants the house, you might try to refinance the mortgage so that it excludes your ex and appears in your name only.
Keep in mind that if you do not sell the home or refinance the mortgage into only one name, you may face challenges down the line.
