Divorce can impact fate of home and finances in Missouri

The act of dividing assets when a marriage is dissolved can naturally involve a great deal of complications. However, one major issue during a divorce may be the fate of what is often the biggest asset owned by the parties — the family home. For those in Missouri navigating a divorce, the financial impact of what happens with the house can have a significant impact on the outcome of the divorce proceedings and what each party may have as they move forward.

First, an accurate value needs to be assigned to the home. Three appraisals may ensure the most accurate valuation. When both names are on the mortgage, legal options must be considered. The person who wants to keep the house will have to qualify for any new mortgage debt in order to free the other person from being associated with the existing mortgage. The reduction income of both parties can impact this option.

Mortgage issues can affect whether either party is able to buy another house. The party who wants to be removed from the mortgage will want to ensure it is done before he or she moves forward with buying or renting another place. For those who find one or both can’t afford the home, selling the property so both can make a clean break may be the best option.

The decision for one party to keep a home or to sell the home will be one that is individual, depending on the circumstances and plans of both parties to the divorce. However, if both parties want different resolutions, Missouri homeowners may find that further negotiations are needed. With so much at stake, including future credit ratings, both parties should be keenly aware of the options available and what may be best for each person as both move forward. 

Source: hmbreview.com, “Consider how divorce can affect home situation“, Steven Hyman, May 22, 2016