Transfer of Title Upon Separation or Divorce
When a marriage is dissolved, one of the most important questions is what to do with the matrimonial home. The easiest answers are:
- Sell it and divide the equity, or
- One party buys out the other and continues to live in the home.
When a couple decides to sell the matrimonial home to the other party upon separation, it is required that the spouse remaining in the home make a one-time lump sum payment to the other. This often involves re-financing.
First, you would need to confirm that you can afford the home on your own. The lender will need to re-qualify the applicant according to the new circumstances before they will allow the ex-spouse to be removed from the title of the property and released from the mortgage obligations. If the applicant does not qualify on their own for the re-financing, it is possible to have a co-signer. It’s also important to keep in mind that most lenders require parties to have a Separation Agreement in place before the re-finance will be considered. Both processes require the assistance of a real estate lawyer.