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Missouri residents need to discuss mortgage during divorce

Of all of the decisions that need to be made during a divorce, the fate of the marital home and mortgage may be one of the biggest. Missouri homeowners may have a difficult time deciding what to do with their home during a divorce. Knowing all of the possible options may help those in the midst of a divorce decide what the best plan may be as property division decisions are underway.

One of the most common and simplest options is to sell the home and split the equity. This obviously works best if there is equity to split and both can walk away from the home with money in their pockets. Another option may be for one party to keep the home. To avoid financial ruin or disputes with the other party, the person keeping the house should refinance the mortgage to have the mortgage in just that person's name. A missed payment or other issues can affect the credit and finances of the person who gave up the home if his or her name is still on the mortgage.

There are other unconventional means of dealing with the house if selling is not an option or if one of the individuals does not want to keep it. Renting the house and putting off a selling decision is one option; however, each party will still have to deal with each other if the house stays in both names. An even more unconventional option that may possibly work for some is for both parties to stay in the home for a while. For some, this option can work and equity can build in the house.

When a person goes through a divorce in Missouri, the fate of the house can play a major role in the finances for the future and how a property division agreement moves forward. The nature of the divorce, value of the home and status of other property and assets could determine what the best option may be. A legal support team can thoroughly examine each unique situation and help Missouri residents move forward with their best interests in mind.

Source: time.com, "What Happens to Your Mortgage in a Divorce", Ashley Eneriz, March 29, 2016

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