Before the housing market crash, the marital home was frequently the largest asset a couple owned. Many times, it was the only asset to be considered in a divorce action. With the current economic downturn, the marital home has become a liability for couples across Central Florida. Many people facing the prospect of divorce are wondering how the negative equity they have in their home will affect their divorce.
If your spouse chooses to keep the marital home and the mortgage is in both your names, you will continue to have a financial obligation to the bank which holds your mortgage. Many people are under the misunderstanding that signing a Quit Claim deed will relinquish this obligation. However, doing so only relinquishes legal title to the home. Unless your spouse can qualify for a new mortgage by refinancing, you will continue to be liable to the lender.
Some couples will short sale the home. If that occurs, any deficiency between the amount of the mortgage and the sale price of the home will be a debt shared by both parties.
At the Law Office of Wade P. Luther, P.A., we practice exclusively in the area of Divorce and Family Law. We advise clients on a daily basis regarding the dissolution of marriage and the division of their property including the marital home. Now, more importantly than ever, it is imperative to seek the qualified opinion of an experienced Family Practice Divorce Attorney regarding any assets that will need to be considered in your divorce action. Please contact us today to schedule an initial consultation with Mr. Luther. You can reach us by phone at (407) 835-9900 or by email.