Many divorcing couples are under the false impression that keeping their low interest rate mortgage on the marital home is an impossibility, but it doesn’t have to be.
The recent surge in mortgage rates makes fixed low-interest mortgage rates one of the most valuable assets that married couples have. Keeping that existing mortgage rate often means the difference between the mortgage payment remaining affordable, allowing one party to stay in the marital home after the divorce, or the parties being forced to sell.
While in this climate, lenders are reluctant to allow one spouse to assume the mortgage removing the other’s name and eliminating any liability that they might have, there are other viable options.
With some cooperation between the parties, including working with their respective legal teams and a mortgage expert who is certified in divorce, the Marital Settlement Agreement can be drafted in a way that preserves this asset for the spouse retaining the marital home without preventing the other spouse from moving forward and qualifying for another mortgage on their own.
Lesley A. Dable, Partner
For more information on Ms. Dable, please visit:
www.beermannlaw.com/team/lesley-a-dable.
