For many married New Jersey couples, the shared home is among their most valuable assets. If you currently share a mortgage with your husband or wife and the two of you are heading for a split, figuring out what to do with your mortgage is an important step in the process.
According to the Motley Fool, the actions you may need to take with regard to your mortgage may vary based on whether you both plan to vacate the home after a split or if one of you wants to remain there.
If you both plan to leave the home
You may be able to tie up loose ends related to your mortgage with relative ease if neither of you wants to stay in the home moving forward. In this scenario, you have the option of selling the home and then repaying the loan you took out using the profits from the sale. Then, you and your ex may split any remaining profits made between you.
If one of you wants to keep the home
Things might become a bit more complex if one of you wishes to stay in the home you once shared after your split. In this situation, the party who wants to stay should consider refinancing the mortgage to exclude the other name. Then, the party remaining in the home might use the new mortgage refinance loan to buy out the other party and pay off the original loan.
If you or your ex does want to refinance the mortgage, the party who wants to remain in the home must be able to qualify for a new loan in the absence of the other party.