Gumm & Green, LLP, Attorneys at Law
Take Your First Step To A New Beginning
855-707-4233 | 805-577-7657

Mortgages and divorce

When deciding what should happen to the family home, many divorcing couples in California will opt for the property to remain with one of the spouses. After this decision is made, there are other factors that both parties will still have to address regarding the home and the mortgage.

There are certain ways the mortgage can be handled when one spouse is to retain control of the home. The original joint mortgage can remain in place, with both parties being responsible for payments and at risk for credit damage if there are payment defaults. Another option to consider may be to refinance the joint mortgage in the name of the spouse who will assume ownership of the home. There is also the option to execute a loan assumption if it's something that's allowed by the existing mortgage.

There are many misconceptions about assuming a loan. A loan assumption occurs when one borrower is taken off the current mortgage without the loan having to be refinanced by the remaining borrower.

Multiple reasons exist for why someone in a divorce will decide to assume a mortgage. This option can be ideal if the current terms for the loans are favorable, such as low interest rates or law payment. A loan assumption can be used to protect the favorable terms in lieu of financing, which may result in a higher interest rate. In the majority of cases, the expense of a loan assumption is lower than the costs of a refinance.

A family law attorney may consider the circumstances of a divorce before negotiating with the opposing party to obtain the desired property division settlement terms for their client. Legal counsel may work to ensure that assets such as homes, joint savings accounts and other high-value assets shared by both parties are divided fairly.

No Comments

Leave a comment
Comment Information

Get Support Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Office Location
5743 Corsa Avenue, Suite 111
Westlake Village, CA 91362-6440

Toll Free: 855-707-4233
Phone: 818-707-4233
Phone: 805-577-7657
Fax: 818-707-4262
Map & Directions

Local Numbers