If you are getting divorced and you and your spouse own a home together in California, you will need to decide whether to sell your home or to have one partner keep it. Family homes are commonly sold when people get divorced and there are many good reasons for this. One of the reasons it may be best to sell your home is to protect you from future financial challenges brought on by your former spouse.
As explained by The Mortgage Reports, if your spouse wants to keep your house, there are a few ways this might be done but only one that ensures you will be able to be completely removed from any financial liability or impact related to the home and the mortgage. To achieve this, your spouse must refinance your existing joint mortgage into a new mortgage in their name alone.
If you allow your existing joint mortgage to remain in effect, you can be on the hook for any missed payments. Your credit will also take the hit for any late or missed payments and even a foreclosure should that ever happen. The stipulations of your divorce decree cannot fully protect you from this nor can signing your ownership away with a quit claim deed.
If you would like to learn more about the factors you should evaluate before making a final decision regarding your family home when you get divorced, please feel free to visit the divorce and residential mortgage page of our California family law website.
