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How is a mortgage handled in a divorce?

If you are getting a divorce in Louisiana, it is important to understand that separating your life from your spouses will not be easy. One area where trouble often arises is if you own a home. Your mortgage lender will not care if you are getting a divorce. The mortgage contract was signed by two individuals and that is how they look at you. Even if you divorce, your obligations to the lender still remains. It is up to you and your spouse to clear up what will happen with the mortgage.

Time notes that you have several options in how you handle your mortgage when you get a divorce. You should look carefully at your situation and your finances when making your decision because you could end up with financial responsibilities you cannot afford if you do not make careful choices.

A common approach is to have one spouse take over the payments. While this is certainly fine to do, it is essential to get the mortgage refinanced so it is only in one name. You do not want your name on the mortgage if you will not be paying it. Typically, when this happens, your spouse would buy you out and pay you your half of the value of the house. You may, however, opt or a quitclaim deed, which is where you simply hand over the interest you have in the property to your spouse.

The best option is usually to sell the house. This could hold up your divorce, though. If you cannot get the house to sale, you will not be able to split the money you get from the sale in your divorce agreement. You may decide to do a short sale, which is where you sell the house for less than you owe, which can make it sell faster. This information is only intended to educate and should not be interpreted as legal advice.

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