When a North Carolina couple decides that it is time to get a divorce, it can be difficult to figure out who gets what. If the couple owns a house, there are decisions that will have to be made regarding whether or not to keep it or try to sell it.
Although there are individuals who want to keep the family home and view it as a major asset, the mortgage can become a huge liability once the marriage has broken down. If the mortgage is almost completely paid off, it could potentially be worth staying together until the final payment is made. This way, the house does not become a liability for the person who ends up with it. If the home is not close to being paid off, it can be very difficult to refinance once the divorce is finalized, meaning both parties still end up being financially responsible for the home.
If the house is given to one person in the divorce, it will have to be refinanced to get the former spouse’s name off the mortgage. If they can pass the lender’s eligibility requirements, they will need to get a quitclaim deed. This transfers the ownership of the house over without having to sell the home.
When couples are dividing marital property as part of a divorce, dealing with the family residence can be problematic, especially if it is not paid off or if both parties want to keep it. An attorney may assist a client with ensuring that all of the marital assets are accounted for and have been properly valuated for purposes of a settlement agreement.