Considerations for splitting a home during a divorce
It is wise for individuals seeking a divorce to take special care in negotiating for the disbursement of marital property, especially family homes. Florida state law follows a principle of “equal distribution” with respect to divorce mediations, wherein the outcomes sought by judges are equitable divisions of marital property between parties.
The property division phase of a divorce may end in the award of a family home to one partner. This exchange can still negatively affect the departing individual’s credit score if his or her ex-spouse is unable to qualify for another mortgage. In this instance, a lender will still consider a home a joint liability for each party because both names would still be connected to the original loan. Outside of refinancing, the individual remaining in the home would need to sell it in order to remove that liability from his or her ex’s credit rating.
When someone qualifies for refinancing, taking out a new loan can leave that individual with the money necessary to buy out his or her spouse’s agreed upon equity in the home. In instances where a cash-out refinance will not allow an individual to pay his or her spouse the amount on which they agreed, that person could use gift funds to make up the difference. Many lenders prefer that such financing comes from blood relative.
How We Can Help
If you, a friend or a family member find themselves in a situation such as this, please call the Law Office of Scott A. Ferris, P.A. at 305 670-3330 right away. Scott A. Ferris, Esq. is a licensed family law attorney who has been practicing law since 1987. He is available whenever you need him to pursue your rights. Please learn about our firm at www.FerrisLawFirm.com.