If you decide to keep your house after a divorce, as you go through the property division process, it may be necessary to refinance your mortgage. This only applies if you already have an outstanding mortgage on the house, of course, and not if you own it outright.
The reason for this is that anyone who has signed onto a mortgage is legally responsible for paying it back. So if you and your spouse took out the mortgage together, you both share this responsibility.
Even if you get divorced, that liability remains. Your mortgage lender does not care if you are married or not. They do not care who lives in the house. As such, the best way to remove your ex’s responsibility for future payments is often to refinance the mortgage into your own name.
Can this be challenging?
Yes. It can certainly be challenging to qualify for a mortgage on one income if you initially qualified on two.
This can be a hurdle that people run into when they fight for the right to keep the house during property division. You may be tempted to give up other assets that you own, thinking your home is one of your most valuable assets. But it may be worth talking to mortgage lenders to determine if it is even going to be possible for you to get a new home loan independently after your marriage has dissolved.
If not, it may actually be in your best interests not to keep the house, especially if you have to give up other marital assets to do so.
Navigating property division
Determining what to do with the home is just one aspect of property division in Georgia. As you and your spouse go through a divorce, be sure you are well aware of your legal rights.