If you are like a lot of people in Virginia, your family home represents one of your largest financial marital assets. It is also generally the asset that evokes the most emotions as a home is the heart and soul of a family in many ways. However, when you are considering or in the midst of a divorce, you must remember that your house is a financial asset and divorce is a financial transaction. Thus, it is wise to evaluate your choices regarding the home more like you would a business decision that a personal one.
It is not uncommon for one person to want to keep a family home after a divorce. If your spouse has requested this, Bankrate indicates you should make sure that you can protect yourself against future credit problems or collection efforts. The way to do this is to require your spouse to refinance your existing joint mortgage into a new solo mortgage in their name alone. Removing your name from the mortgage is the only surefire way to eliminate any financial ties or responsibilities to the property.
Even if you sign a quit claim deed handing over your portion of ownership in the property and your divorce decree assigns financial responsibility for the house to your spouse, the bank can still pursue repayment from you if your name is on the loan.
If you would like to learn more about the factors you should take into consideration when making decisions about your family home and other assets during a divorce, please feel free to visit the mortgage and divorce page of our Virginia family law website.