By Robin Roshkind, Esquire, West Palm Beach, Florida
If you are divorcing in Palm Beach County, Florida, and own a home that your spouse is going to keep, if there is a mortgage on that home, it could cause problems for you. Here is why: your spouse is going to buy you out of any equity in the home. In order to do that, he/she needs to refinance the home. He/she may not qualify, so for you to get your check, you may need to co sign a new mortgage, which leaves you liable if your spouse defaults.
In another scenario, if there is NO EQUITY in the marital home, and your spouse is going to keep the home and live there, you will need to quit claim deed the home to your spouse. Just because the home is now hers/his, does NOT release you from your original liability of the original mortgage you both took out as a married couple. UNLESS your spouse can qualify for a new mortgage, by way of a refinance, on his/her own, you will still be liable to the lender for the original mortgage on a home you do not own, if your spouse cannot or will not pay the obligation. In other words your good credit may be at the mercy of your ex.
It used to be that divorcing couples would fight over which one of them keeps the marital home. Now couples are fighting over which one of them does not keep the marital home. From the lender’s standpoint, nothing has changed unless there is a refinance in the sole name of the spouse who is going to live there. The only other alternative is a short sale to a third party. Should that occur the deficiency belongs to both of you.
For more information call one of the divorce lawyers at ROBIN ROSHKIND, P.A. at 561-835-9091 or click on the Firm’s web site at www.familylawwpb.com for more information.