The marital home is likely the most valuable asset to be divided during Pennsylvania divorce proceedings. If either you or your former spouse have been awarded the house, do not assume the other spouse has no financial obligations. There’s a difference between removing a name from the title to a home and removing the name on a Pennsylvania mortgage. As long as the names for both spouses remain on the mortgage both spouses will be responsible for that mortgage.
If your former spouse misses any mortgage payments your credit will take a hit (and rebuilding your life after a separation is hard enough). Any Washington County divorce agreement should require that the spouse keeping the home refinances the mortgage shortly after the divorce.
If you keep the marital home your spouse will want their share of the equity. (Your divorce rights.) A cash-out refinance is an often-overlooked strategy for coming up with the funds necessary to buyout your former spouse’s interest in the marital home. The purpose of a cash-out refinance is to tap into the equity from your home by taking a new mortgage that is bigger than the existing mortgage allowing you to come up with the lump sum required to buyout your ex.
This information not only applies to a Washington County divorce, a Beaver County divorce, or an Allegheny County Divorce but divorces throughout Pennsylvania. Our teamof experienced family law attorneys can not only draft and review divorce agreements to make sure mortgage considerations are addressed, we can be there with you throughout every step of the divorce process. Contact our office today to schedule a consultation.