Dealing with a mortgage during and after a divorce

When there's a divorce, one of the most important decisions involves the couple's primary residence and their mortgage.

2013-04-26

April 26, 2013 (Press-News.org) When there's a divorce there are typically a million decisions that need to get made. Debt allocation, child custody arrangements, alimony, and property distribution are all common issues faced by divorcing couples. The most important decision, however, usually involves the couple's primary residence.

Addressing the mortgage

For most divorcing couples with a home, there is typically a mortgage. When there is a joint ownership and both parties of a divorce own the residence, there needs to be a decision as to who gets the property.

Whether it's through amicable agreement or a court ordered decree, one is assigned the house. This party, however, is also usually responsible for the mortgage. The divorce decree may stipulate that the party staying is obligated to pay the mortgage or it may indicate that the one who gets to stay in the house has a period of time to sell and free the mortgage lien or refinance the property.

Repercussions of failure to pay

However, whichever agreement is stipulated, a divorce decree does not trump a mortgage contract. In other words, even if a divorce decree stipulates that one party takes over possession of the house and mortgage, the other party can still be legally responsible because his or her name is still on the mortgage note.

(The only way to remove a name on mortgage documents with multiple names is if one party refinances and gets the mortgage to the property is his or her name, the mortgage is paid off with cash, or one party dies.)

So if the party with possession fails to make a timely payment on the mortgage, both parties listed on the note will see a negative impact to their credit scores. Additionally, if default occurs and continuous mortgage payments aren't made, depending on the state, the mortgage lender can go after both parties for deficiency judgments.

Repercussions of other debt in a divorce

Similar to mortgage loans, credit card debt poses the same problem. If one party is assigned a specific credit card debt through a divorce decree and both names are on the credit card account, both parties' credit scores will be impacted if there is a late or missed payment on the monthly bill. Additionally, the bank or lender could seek recourse from both parties as well for nonpayment.

Seeking help

These are other situations involving debt and property in a divorce can be complex. Seeking the help of an experienced divorce attorney who can offer advice on the best course of action as it pertains to your situation is advised.

Article provided by The Law Offices of Burch and Coulston, LLP
Visit us at www.ocdivorce.net

ELSE PRESS RELEASES FROM THIS DATE:

Studies: shorter shifts for interns fail to decrease medical errors

2013-04-26

When a medical student graduates and begins his or her internship, long hours are part of the deal. Until recent years, these interns had to work up to 36 hours straight. Because of the long hours, regulators decided to reduce their shifts to 16 hours in 2011. Regulators reasoned that the interns were tired and overworked and were making medical errors as a result. Although it flies in the face of reason, the medical regulators were mistaken, according to two recent studies published in JAMA Internal Medicine. The studies found that the shorter shifts did not lead to ...

Technology could help teens stay safe while driving

2013-04-26

According to the Insurance Institute for Highway Safety, injuries from car crashes are by far the leading cause of death among people in the U.S. between the ages of 13 and 19. In 2010, the last year for which statistics are available, a total of 3,115 teenagers died in motor vehicle crashes in the U.S. The IIHS identifies driver immaturity and inexperience as the primary reasons why the car crash death rate among teenagers is so high. Immaturity leads to risky behaviors such as speeding, while inexperience makes it difficult for young drivers to identify potential hazards ...

Options for paying for long-term and nursing home care in Connecticut

2013-04-26

Typically, people needing long-term medical care have three payment options; they must pay for care through private funds, long-term care insurance or Medicaid. Medicaid is a state run insurance program partially funded by the federal government. Connecticut's Medicaid program, also known as Title 19, covers low-income and low-asset residents who need long-term or nursing home care. Traditional medical insurance and Medicare generally do not pay for long-term care. While long-term care insurance may be an option, such insurance and its affordability depend upon the health, ...

The basics of New York child custody

2013-04-26

New York's family courts handle thousands of child custody cases annually. Anyone involved in a contested custody case should have a basic understanding of how the custody process works in order to make the navigation through the court system as painless as possible. An overview The blanket term "child custody" actually describes two very different types of custody, both of which have an exceedingly important role in the child's life. Physical custody, for instance, deals with where the child physically resides. Physical custody is most often either full-time ...

Tools to help avoid traffic accidents for young drivers

2013-04-26

According to the CDC, or Centers for Disease Control and Prevention, motor vehicle accidents remain the top cause of death for teenagers in the United States. In 2010 an estimated seven teenagers died every day from injuries received while in a car crash. Although these numbers are grim, there are steps that can be taken to help reduce a teenager's risk of involvement in a car accident. Who is at risk? The CDC notes that teen drivers are three times more likely to be involved in a fatal car crash than drivers over the age of 20. Teen drivers include those aged ...

Swimming pool drowning takes two lives too early

2013-04-26

In mid-April 2013, two young Long Island siblings tragically lost their lives after drowning in a neighbor's backyard pool. As summer approaches and hot days spent playing in the water lie ahead, it is important to understand and follow New York's pool safety requirements to help protect against terrible drowning accidents. Pool accident strikes Long Island According to reports by News 12 Long Island and the New York Post, on the afternoon of April 14, 2013, a mother called the police to report that her two children, a 5-year-old son and a 7-year-old daughter, were ...

Texas man did not obtain a proper divorce and was married to two women

2013-04-26

A Texas man found himself in a lot of trouble this month when it was discovered he was married to two women at the same time. According to the Fort Worth Star-Telegram, the 38-year-old man married his childhood sweetheart in 2004 and surprised her in 2009 by telling her over the phone that he wanted a divorce. He had her sign divorce documents that he had completed online and he moved out of the marital home located in Arlington. The man filed the divorce petition with the court on October 16, 2009, and less than three hours later married another woman who lived in Grapevine, ...

Shorter resident shifts may in fact increase medical errors, studies say

2013-04-26

According to two studies recently published in the Journal of the American Medical Association, attempts to reduce long work hours among medical residents in order to improve patient safety may actually increase the risk of medical errors in teaching hospitals - which is contrary to what many may have expected. Given the several teaching hospitals here in Philadelphia-area, these studies may provide helpful guidance to hospital administrators attempting to reduce medical errors in their own facilities. Impact of resident shift length to medical errors Specifically, ...

Study finds driver fatigue underestimated, major cause of auto accidents

2013-04-26

Media reports of increasing auto accidents due to distracted driving behaviors like texting while driving are everywhere today. Although the problems with mobile use behind the wheel are accurate and alarming, a new study, however, shows that another driving behavior may be just as problematic--driver fatigue. The study on driver fatigue With help from the National Highway Traffic Safety Administration, a study was recently conducted by the Virginia Tech Transportation Institute on driver fatigue and revealed that fatigued driving is among the leading causes of ...

Distracted drivers still find it hard to kick the electronic habit

2013-04-26

With all the media attention focused on the dangers of distracted driving, one might expect that drivers have taken the message to heart and have decided to put away their cellphones while driving -- both for their own safety as well as others'. However, recent data from the National Highway Traffic Safety Administration shows that an alarmingly high number of drivers continue to use electronic devices behind the wheel, significantly increasing the risk of a dangerous distracted driving accident. Distracted driver statistics The NHTSA's National Occupant Protection ...

Dealing with a mortgage during and after a divorce

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: