When people in Missouri decide to divorce, the family home may be one of their largest and most emotionally charged assets. At the point when the couple must decide how to handle the marital home in a divorce, it is important for both spouses to thoroughly examine their financial circumstances to reach a decision that can help them thrive financially after the split. There are a number of factors that can contribute to that decision, including the amount of equity in the home.
This could determine the amount that one spouse needs to provide to the other in order to compensate them for their share of the home and affect whether that spouse seeks to keep the house at all. If so, it can be important first to establish that he or she can receive a refinanced mortgage for the remaining amount owed. It is relatively easy to transfer a jointly owned home into the name of one person for ownership purposes. The other owner simply needs to sign a quit claim deed to the former spouse as agreed to during the divorce. However, that is not enough to extinguish the other spouse’s obligation to pay the mortgage.
In order to do that, the home will need to be refinanced. Without taking that step, the other spouse could lose his or her ownership interest while still being fully responsible for paying the mortgage. While refinancing the home, a spouse can also have the home inspected to watch out for any unknown problems or drops in home value.
People can also decide to sell the home and split the proceeds, depending on their financial situation and needs. A family law attorney might be able to provide advice and representation in dealing with real estate issues.