If you are facing the prospect of getting divorced in Montana, you are also likely facing the prospect of losing some of your assets or belongings. This is unfortunately an inherent part of splitting up a marital home for most people. When it comes to your actual home, you or your spouse might want to keep that rather than sell it. However, there are important facts to be aware of before you make this choice.
As explained by Bankrate, if one of you signs over their ownership in the house to the other person but the original joint mortgage remains in effect, both people will continue to be financially responsible for the property. This means that if the spouse who stays in the house eventually fails to make mortgage payments or is even late on some payments, the other person’s credit may be affected. The lender may even pursue that person for the payments.
A new mortgage in the name of the person who will stay in the home is the only way to to avoid this possibility. Because a person’s income after a divorce may drop, getting a solo mortgage may not be possible. This is one reason why many couples choose to sell their homes during a divorce.
This information is not intended to provide legal advice but is instead meant to give divorcing spouses in Montana an overview of the factors they should take into consideration before rushing into a decision about what to do with their marital homes when getting divorced.