New Jersey residents may be hesitant to give up their stake in marital property, especially their joint real estate, after spending years making it their home. Dealing with the family home can be one of the most contentious issues in family law. However, various solutions are available to parties in specific circumstances.

If two spouses are still legally married, one spouse may sell their remaining stake in the property to the other spouse. The selling spouse would sign a quitclaim deed to release his or her interest in the home. Sometimes parties agree that one of them will take the home, buy out the other’s interest, and refinance the mortage to get the selling spouse off the mortgage within a specified period, However, sometimes the purchasing spouse may not qualify for a new mortgage. If this situation arises, the other spouse may have difficulty acquiring new property due to the pre-existing mortgage. In this situation, it may be best to sell the house and split the proceeds between both spouses. Until a person’s name is removed from the loan, he or she remains liable on the obligation.

Spouses should calso onsider how their credit may be affected by their divorce. For example, until spouses are separated under a signed Settlement Agreement, lenders will generally consider any joint debt to be the debt of both spouses. Additionally, if a person acquires a property before the divorce is finalized, this property may be considered joint marital property.

The rules of the road can be very tricky.  Parties are best advised to consult with knowledgeable and experienced Supreme Court Certified Family Law Specialists to advise them properly, efficiently, and up front.

Spouses who do not agree about how to best handle marital property may seek legal counsel to learn about their legal rights and obligations. Taking this step may help them become more informed before commencing this important transition in their lives.

Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, July 09, 2014