If you and your spouse in Kentucky have decided to end your marriage, you are now likely faced with a myriad of other decisions. These decisions often center around how you will split up your marital estate. This includes both assets and debts and, if you are like most couples, your mortgage is likely the biggest debt you carry making it essential that you act prudently when choosing what you will do with this loan and the associated home.
It is not uncommon for one person to want to keep a family home after the divorce. As explained by The Mortgage Reports, if you are the spouse who will be leaving the home, you should be very wary about allowing your former spouse to keep the house without refinancing it into their name only. There are a few key facts here, the first of which is that banks do not consider homes and mortgages to be the same. Even if you sign a quit claim deed that provides full ownership to your partner, if your name remains on the mortgage, you are still liable for that debt.
If your partner ends up in financial trouble and is unable to pay the mortgage, the bank could pursue payment from you. Any late or missed 5 payments may reflect on your credit report. These are just some of the problems you could experience.
If you would like to learn more about how to protect yourself from future credit and debt problems related to your mortgage when getting divorced, please feel free to visit the marital home decisions page of our Kentucky family law and divorce website.
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