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PROTECTING YOUR CREDIT DURING DIVORCE
Your Divorce Agreement Does Not Remove Your Responsibility to Creditors
A divorce agreement may assign a debt to one spouse. However, the creditor can continue holding both spouses responsible when both names remain on the original account.
The Problems
An equity buyout is not simply the home’s value minus the mortgage divided by two.
The actual decision may involve:
01.
​Property value and mortgage balances
02.
Home equity lines, liens, or other obligations
03.
​Each spouse’s agreed ownership interest
04.
Credits or adjustments negotiated during divorce
05.
​The method used to fund the buyout
06.
Mortgage qualification and closing costs
07.
Cost basis and possible future housing tax exposure
08.
The complete cost of maintaining the home on one household income
​A divorce agreement can require an assumption, but it cannot force the mortgage servicer to approve one.
The DMPLLC Solution
​Divorce Mortgage Planning LLC evaluates the complete financial impact of the proposed equity buyout and home retention plan.
​Property value, mortgage balances, liens, and estimated net equity
The proposed division of equity and buyout obligation
Available assets and financing strategies
​Mortgage qualification and income eligibility
Removal of the departing spouse’s mortgage liability
​Mortgage payments, property taxes, insurance, utilities, maintenance, and repairs
​Post divorce income, debts, expenses, cash flow, and financial reserves
​Housing tax considerations for review with a qualified tax professional
The financial differences between keeping and selling the home
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