The details of real estate involved in a divorce situation can play an important role when a mortgage is needed. This article touches on some of the details often overlooked during a divorce. In this article, we will go over the most commonly asked questions regarding real estate during divorce.
How Much Will I Get?
When you file for divorce, you will be asked to provide the date of the purchase of the home, the purchase price, the estimated value, the estimated value for any prior refinancing, and any outstanding mortgages.
To establish value, you’ll be required to provide the date of the appraisal, the value of the home, the value of the home based on public records, the number of rooms, the square footage, any additional improvements, and the type of mortgage, if any. It is very important to note that if the house is still owned by the seller, the divorce will not affect the ownership.
Keep in mind if you are looking for equity, there is no guarantee that the house will be sold or that the equity will be used for any other purpose.
How Long Will I Have To Wait Before I’m Able To Get The Money?
If you are seeking alimony, you must wait for a copy of the court order before you can get a loan. You will need to get the court order before you can begin applying for a mortgage.
If you choose to seek alimony, ensure that you get all of the information you need before applying for a mortgage.
If you are applying for a mortgage and want to continue to be owner of the property, you’ll need to fill out a waiver of stay and termination of alimony. If you fail to fill this out, you may be liable for monthly alimony payments and you’ll need to wait for the divorce to be finalized before you can sell the home.
It is highly suggested that you consult with a divorce attorney to avoid any mistakes. This can be a difficult and emotional time, and you do not want to add complications that may slow down the process.
Who’s on The Title, and Why Does it Matter?
If you are purchasing the home together, you can expect to see both names on the title. If you are the only owner, the name will likely be yours. This is important to know because if you are seeking alimony or your spouse seeks alimony, the title will affect how much you get.
The home’s equity will be considered an asset (your spouse will be entitled to 1/2 of the equity), and this will lower your alimony award. If you are the sole title holder, this will not affect the amount of equity you’ll be able to claim.
If your spouse is on the title, this could be problematic if you are seeking alimony because the spouse will be able to get alimony based on the value of the home. If you are the sole title holder, the spouse cannot get alimony because the home is not an asset.
What is The Property Worth?
This is also one of the most common questions. The older the house, the more difficult it can be to put a current value due to depreciation. If the house is very undervalued, you may be able to use the equity to obtain more alimony. You’ll need to accurately state the home’s value and what is owed on the mortgage. If there is a significant difference, this could affect the amount of equity depending on the circumstances.
There are multiple factors that will affect your alimony award and how much equity you can get. It is important to get the facts and consult with an attorney to ensure that your interests are protected. The bottom line is you don’t want to risk losing any equity in the property, and it would be best to consult with a divorce attorney to avoid making any mistakes.
More and more people are buying their homes and/or refinancing their homes. If you are in the midst of a divorce, you need to understand how it could affect your financial situation. You will need to have the information regarding the home clear and concise before applying for a mortgage.