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The pitfalls of a joint mortgage in a divorce

Have you and your spouse decided to get a divorce? If so, you are not alone as many other Wisconsin couples face this very tough choice every day. However, the fact remains that getting a divorce can feel lonely as you have to let go of many things. Your home may well be one of the things you leave in a divorce. But, you should take caution to make sure that you address not only what to do with your house but with your mortgage as well.

If your spouse has indicated a desire to retain your family home and you have a joint mortage on that house, different financial arrangements will need to be made. Bankrate explains that even a detailed divorce decree that puts responsibility for the mortgage on your spouse cannot actually protect you from collection efforts by the lender. This means that if you allow your spouse to stay in the house without getting a new mortgage in their name only, you could be liable for any missed or late payments.

In addition, your credit will take a hit if your former spouse fails to make mortgage payments on time or, even worse, lets the house ultimately go into foreclosure or be sold in a short sale.

If you would like to learn more about the things you should know before you make a final decision about your home and other assets during a divorce, please feel free to visit the property division page of our Wisconsin family law website.

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