Typically, during marriage, couples acquire joint debt which includes mortgages, car loans, and credit cards. Once the divorce process starts, you should take stock of these liabilities and prepare a plan to separate your finances because you will be liable for any existing and added debt. For example, you can close a joint credit account or convert it to an individual account so that your spouse does not continue to spend at your expense. Removing your name from a mortgage will take a negotiated or court settlement, but in the meantime, you are responsible for the monthly payments. Read this article for additional steps to take to protect your credit health.
Quite often, the divorce settlement spells out who will keep the marital home, as well as how an ex-spouse will be removed from the title and mortgage. As a follow-up to our last blog post, this article briefly explains how refinancing may help you keep the marital home, improve your cash flow, and separate your finances from your ex-spouse.
The marital home may represent a significant piece of a divorcing couple’s net worth. Unlike financial accounts which are readily evaluated, a home will require an appraisal or two to determine its market value. After the parties agree to the value, there are several options to consider in splitting the home equity as explained in the following article.