Divorce rates are increasing around the world, and relationship experts warn the pandemic-induced break-up curve may not have peaked yet. BBC
— Garrick Werdmuller, President/CEO Fresh Home Loan
ALAMEDA, CA, UNITED STATES, November 7, 2022 /EINPresswire.com/ — Unfortunately, divorce is a common reality in America, and one of the hardest decisions to make is “What are we doing with the house?”. The short answer is sell or refinance. If one is planning on selling, this information may not be for you. If you are keeping the home, chances are you will need to refinance for a variety for reasons.
Reason #1: Debt Liability
Your divorce decree doesn’t affect your liability for debt, nor does it excuse it. Divorce decrees are issued by the courts at the end of divorce proceedings and state the division of community property. However, your mortgage lender is not legally required to take any action as a result of a divorce agreement. This means they can still hold the two ex-spouses liable for the debt. If one person stops paying, it will affect both persons credit profiles.
For this reason, it is essential to refinance the house, whether you are the departing party or the one staying on the home. You do not want that…
