Divorcing spouses in Georgia may want to try and keep their marital home once their divorce is over. This can help provide some stability for children as well as for themselves during an otherwise tumultuous time filled with change after change. This, however, may not be as straightforward as one might believe.
Mortgages and home titles
As explained by Rocket Mortgage, people should be careful to ensure that the names on a home’s mortgage and title match up. Lenders will pay close attention to the names on the mortgage as their guidance for who they can pursue for repayment of the debt. This means even if one spouse signs a quit claim deed handing over their share of ownership to the other spouse, they may still be considered liable for the mortgage payments should their name remain on the active home loan.
Mortgages and divorce decrees
According to The Mortgage Reports, even if a divorce decree indicates that one spouse will keep the house and will be responsible for making all mortgage payments, the other party may still be considered financially responsible if that original joint loan remains intact.
Some mortgage lenders may allow a person to petition to have their name removed from a home loan, but this may not always be approved. A spouse who wants to keep their house may need to apply for an all-new mortgage in their name only. This would be based on their post-divorce income, assets and liabilities. The value of the home and any equity in the home would also factor into their ability to qualify for a new solo loan.