If you have divorced but want to stay in your marital home, you may wonder what options you have to do this. After all, if the home is in your and your ex-spouse’s names, the obvious option would be to sell and split the profits to move on with your new, single life.
While this is the road that some people choose, there are options to keep your home in a divorce. Some of these options can be found here.
Refinance the mortgage in just your name
If you earn enough to carry the mortgage on your own, this may be a viable option. You can refinance the home through a lender and then free the other spouse from future payments. Keep in mind that you may need to make other concessions in the divorce proceedings if the other party does not receive any equity that is in the house.
Consider loan assumption
Loan assumption is like refinancing; however, both parties must agree to it. With this, you remain the sole borrower, and your ex-spouse is free from any future liabilities. The closing costs for this option are lower, too (in most cases). Keep in mind, though, that it may be necessary to provide more compensation for your ex-spouse since they won’t receive their share of the equity. It’s also worth noting that only mortgages that were taken out before 2008 have this option.
Keeping the marital house in a divorce
If you want to stay in your home because it is where you want to raise your children or because you have an emotional attachment to it, be sure to keep the options above in mind. You can also speak to a legal professional who can help you understand other options that may be available for your situation.