New York divorce: Should you keep the house in today's economy?

Posted By Michael R. Varble & Associates, P.C. || 8-Mar-2013

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

Categories: Property Division

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