What you need to know about how to Manage Mortgage in Divorce

Texas is one of a handful of states in the country that is referred to as a community property state. That means when a married couple gets a divorce, their asset pool is to be split evenly .However, Mortgage in divorce is something that remain puzzling due to its effects after divorcing

One exception to this principle would be if the couple had a prenuptial agreement or a postnuptial agreement in place that outlined a different means of dividing assets and that had been agreed upon by both parties.

When it comes to a family home, most couples have a joint mortgage. If your spouse wants to keep your home, you should require them to get a new mortgage in their name only.

There are two pitfalls associated with allowing the joint mortgage to remain in effect, both of which could have devastating impacts on your life.

How to manager Mortgage in divorce

One problem is that, despite what your divorce decree may say, a bank lender may still consider you financially liable for the joint loan so long as your name remains on it.

Another problem is that the existing joint mortgage will factor into your debt-to-income ratio, likely making it harder for you to qualify for a new loan of your own for another property. It may even make it more difficult for you to get a new credit card, vehicle loan or qualify for a rental or lease agreement on a residential property.

This information is not intended to provide legal advice but is instead meant to give residents in Texas an overview of the factors they should be aware of when making decisions about their family homes and mortgage in divorce.

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