When a couple in Florida makes the difficult decision to separate and eventually to get divorced, there can be a virtual onslaught of tough decisions to be made. One of these decisions can often be what to do with the marital home. It is not uncommon for one spouse, often the wife, to wish to keep and stay in the home. This is particularly common when young children are involved as parents want to maintain stability for their kids.
However, as Bankrate explains, spouses should be very careful about allowing their former partners to keep a home unless a new mortgage is first obtained in their name only. If a joint mortgage remains in effect even once the ink on the divorce decree is dry, both people can be pursued for repayment on that loan. Missed or late payments can appear as negative items on both people’s credit reports.
A couple might sign a quit claim deed assigning ownership of a home to one person. A divorce decree might then stipulate that person to have sole responsibility for all financial matters related to the home, including the mortgage. But, if the mortgage still shows both names, the problem remains.
The Mortgage Reports indicates spouses could think about adding a stipulation in their decree that if any payments are late or missed, the house must be sold. There are also some home loan programs that may have options for newly divorced people to refinance a home even with their new, generally lower, income.