It is not at all uncommon for one spouse to work hard to keep a family home after a divorce. If you and your spouse are getting divorced in Minnesota and your partner has indicated a desire to retain the house, there are some very important points you will want to understand so that you can protect yourself financially. If you fail to take the proper steps, you could find your credit suffering based on the actions of your former spouse.
You might think that stipulating financial responsibility for your existing mortgage in a divorce decree is all that you need in order to eliminate your liability for the debt. As explained by Bankrate, however, that is not the case. A bank is not concerned with the terms of your divorce. They are focused solely on the names of the people identified as the responsible parties on the loan documentation.
If your joint loan remains in place and your spouse at some point fails to make a payment or is late on any payments, the lender can pursue repayment from you. They can also report the missed or late payments on your credit report. If the home were to be foreclosed on, this again would show up on your credit history.
If you would like to learn more about the importance of a refinanced mortgage if you are going to allow your former spouse to keep your family home after you get divorced, please feel free to visit the mortgage and divorce page of our Minnesota family law website.