For many couples in New York, their marital home represents the heart and soul of their family. This can be especially true for people who have children as they look at their homes as a source of stability for their kids. A couple’s home may also be their most valuable financial asset. These are some of the reasons that some spouses want to keep their homes when they get divorced.
When one person wants to keep the house, Money.com encourages the other spouse to proceed with caution. Without the right steps, a person could walk away with no rights to the property yet still be financially liable for it.
Some people might think that all they have to do when letting their spouse keep the house is to outline the agreement in a divorce decree. This, however, does not take a person’s name off a mortgage loan. Other couples may believe that signing a quit claim deed assigning full ownership of the property to one spouse takes care of everything. In reality, all this does is eliminate the other person’s ownership in the property.
The Mortgage Reports explains that the person who wants to keep the home apply for a new mortgage in their name alone. This is the only way for the other spouse to be financially disassociated with the property. Qualifying for a mortgage on a post-divorce income can be difficult for some people so factoring in a home’s equity and the applicant’s credit score will be important before making a final decision.