Divorcing spouses in Ohio often find themselves at a crossroads when it comes to deciding what they want to do with their family home. For most couples, a house represents the single largest asset in a marital estate. The accompanying mortgage also commonly represents the single largest debt that the couple owes.
Despite the financial realities that go along with a home in a divorce, many people feel a strong emotional tie to their homes that make them want to push hard to stay in the home after the divorce. Many people want to do this for the sake of providing stability for their children. If one person is willing to leave the home and let the other spouse have that asset, care must be taken to protect the leaving spouse’s credit and ongoing assets.
As explained by The Mortgage Reports, even with a divorce decree that outlines responsibility for the home to one person and a quit claim deed that signs over ownership to just one person, if a mortgage in both spouse’s names remains active, both spouses will continue to be financially liable for the debt. This means the person who no longer has any claim to the property may be held accountable to pay if the other person fails to. Their credit may also be damaged due to any late or missed payments on the part of their former spouse.
Bankrate adds that whatever decision is made regarding a home may well have tax implications for both parties. These should be carefully evaluated within the context of the larger divorce settlement.