Most people who are either getting ready to go through a divorce in Texas or who are already in the middle of such a case are usually hoping that the legal proceedings play out as smoothly as possible. But, that is entirely dependent upon the facts of the case in question and on the ability of the divorcing spouses to come to out-of-court agreements on the major issues in the case, like child custody and support, alimony and property and debt division.
Of course, any one of the legal issues in a divorce case can cause things to get complicated in a hurry. One major question for many divorcing couples is what to do about the family home – and the mortgage attached to it.
Mortgages and divorces
A mortgage, like any loan, will have specific terms and conditions – it is a contract. So, to figure out what to do about the mortgage in your divorce case, usually you must first start by figuring out what you can do. Depending on who your mortgage lender is, you might have fewer options than you realize.
For example, as a recent news article mentioned, many mortgages cannot simply be transferred from one spouse to the other – and doing so without prior written consent from the lender could result in some unpleasant financial situations, like the requirement for immediate repayment of the loan in full.
And, even if the total mortgage can be assumed by one spouse or the other, such a move will likely come with specific requirements and restrictions. And then, the divorcing spouses still need to figure out how to address the built-up equity in the home.
If you will be dealing with a mortgage as part of your divorce case, things may not stay as simple as you would like. Be sure to know your options and understand how your decisions will impact your short-term and long-term financial circumstances.