Homes purchased during marriage generally divide fairly in divorce. As noted by Mortgage Professional America, keeping a shared home after a divorce typically requires showing that you have the ability to manage it on your own.
If you have the means to do so, you could buy your home and remove your spouse’s name from its documents. Kentucky’s divorce laws, however, require an equitable division. The court could require you to negotiate an amount needed to pay your soon-to-be ex-spouse enough to buy his or her fair share.
Will a mortgage assist in maintaining ownership?
An existing home loan could require refinancing. If you qualify for a new mortgage, you may remove your spouse’s name from the current note. Once completed, your lender generally has no right to seek repayment from your ex-spouse.
If you cannot obtain a new mortgage, your ex-spouse might agree to make payments on your existing loan. Sometimes, this type of agreement works for couples with children who wish to remain in their homes. Financial assistance, however, may need to become part of your court-ordered divorce decree.
How could I buy my ex-spouse’s share of the home?
A property with valuable home equity often assists in buying out an ex-spouse’s share. According to Bankrate.com, a professional appraisal will provide your home’s equity value. Knowing this amount helps to decide on a payment amount that your spouse considers fair.
Your other shared assets also require dividing under the Bluegrass State’s divorce laws. Based on your property’s equity value and spouse’s fair share, you could agree to trade other marital assets to hang on to your home.
Before taking ownership of your home, you may need proof of income to qualify for a new mortgage. Financial support as part of your divorce decree could count toward your ability to pay for and maintain a property.