Is threat of foreclosure seeping into your divorce proceedings?
The challenges Florida spouses face in divorce are typically many. No two marital situations are exactly the same that lead couples to ultimately determine divorce as the most viable option for resolving their particular issues. The divorce process is seldom easy, and it’s often necessary to compromise and cooperate in order to negotiate fair and agreeable terms regarding family-related matters, such as who will keep the marital home.
Nowadays, it’s fairly common for married couples to purchase homes through 30-year mortgages. Many spouses are caught off-guard when serious financial problems arise before or during divorce proceedings that adversely affect their abilities to keep up on monthly mortgage payments.
When threat of foreclosure looms
State laws vary when it comes to divorce and foreclosure. Various issues, such as prenuptial agreements, financial emergencies or court orders may significantly impact one’s mortgage during divorce. Keeping the following in mind may help you avoid problems:
- Generally speaking, if your name and your soon-to-be former spouse’s name are on the mortgage, you are both liable for keeping up mortgage payments during divorce proceedings.
- Some people choose to rearrange a loan so that only one spouse’s name remains on the mortgage.
- A financial lender holds both spouses liable for payments unless you remove one name from the mortgage or sell the house.
- The court may order one or the other spouse to pay the mortgage as part of a divorce decree, but lenders assume liability against both spouses so long as both names remain on the mortgage.
- One spouse may sue the other if he or she fails to satisfy a mortgage liability.
It’s often the case that other major debts, such as those involving credit cards or large car payments, make it nearly impossible to keep up on mortgage payments during divorce. When children are involved, many parents feel completely overwhelmed and worried, wanting to avoid foreclosure so their children do not have to move to a new place.
Just like divorce, foreclosure is a process, not a single event. With experienced guidance, you may be able to choose an option that helps you obtain immediate debt relief as well as keep your home. For instance, Chapter 13 bankruptcy brings foreclosure proceedings to a halt. You may be able to negotiate a new interest rate or payment plan that helps you remove debt and restore financial stability. A Florida bankruptcy lawyer can clarify the law and help you explore all available debt relief options.