There aren't many people in New York that haven't been affected
in some way by the recession. The crash of the housing market has even
called into question whether someone can keep the house in a
divorce. Even under the best of circumstances, it can be difficult to keep a house.
When one party wants to keep the house in a divorce, there needs to be
some sort of concession to the other party. For some, this ends up being
the right to another asset. However, that is only the beginning. Most
often, the spouse not keeping the house is going to want their name off
of the mortgage.
This means that the party wanting to keep the house would have to be able
to secure independent financing. Considering the fact that securing a
loan will most likely have to be accomplished with half of the income
that was used to purchase the home that could be a daunting task. Adding
to this is the fact that lenders are not as willing to finance homes in
New York as they were prior to the recession.
This is not to say that it would be impossible to keep the house in the
event of a divorce. There are just several factors to be considered prior
to making the decision to try to keep the house. The party wanting to
keep the house may need the help of the other party to keep the house.
If the divorce is amicable, it may be possible for one party to continue
making the payments without removing the other party from the mortgage
and deed--at least until another solution presents itself.
Source: Huffington Post, "Keeping The House After Divorce," Kathleen B. Connell, Feb. 20, 2013