Once your New Jersey marriage ends, you must figure out what to do with any assets you and your ex own together. For many former couples, a shared home constitutes the most valuable asset they share. If you and your ex own a home and share a mortgage, you have several options as far as what to do with it when you divorce.
According to Bankrate, the option that might suit your needs most favorably is going to depend on certain variables. Some of these variables include how much equity you have in the home and whether you, your ex or both of you want to keep it. However, many people in your shoes choose one of the following options when it comes to handling the mortgage.
Sell the home
If neither you nor your former partner has the desire to remain in the home you once shared, selling the home might be an easy way to pay off the mortgage and give each of you a fresh start. On the other hand, if neither you nor your ex has enough money to afford the mortgage on your own, you may have no choice but to place it on the market.
Refinance the mortgage
If one of you does want to stay in the home and the other does not object, the party who wants to remain there must refinance the mortgage to remove the other party’s name. As long as you or your ex are able to qualify for a new mortgage without the other party, refinancing typically frees up enough cash for one party to buy out the other.
While these are two common ways to handle the mortgage when you divorce, this is not an exhaustive list of all options you may have.
