There is no doubt about it, working through the ins and outs of a divorce can be a challenging task. Financial concerns, custody issues and figuring out how to divide property are subjects which are often difficult to broach. For many divorcing couples in Massachusetts, concerns about shared real estate, in particular, can create a lot of tension — especially if an underwater mortgage is involved.
When dividing property, multiple factors need to be considered beyond which spouse gets to keep what. While the martial home or other shared real estate can be considered a significant asset, it doesn’t always make it a positive one. This is particularly true for those who may have a mortgage amount which far exceeds the current value of their home.
Even though the housing market has seen improvement, the previously high values of many homes have still not been regained. This can make the decision of what to do with a home after divorce even more difficult. One spouse may wish to remain in the home. Other couples may choose to attempt a short sale and take the loss and hit to their credit rating. In either case, certain steps to appropriately deal with the mortgage need to be made, the first of which includes negotiating terms for property division that are considered fair for both parties.
Projected post-divorce finances and mortgage options will help in determining the best course of action to pursue in this kind of situation. Once all factors have been fully considered, it will be far easier for Massachusetts couples to proceed with negotiations. Assistance is available to ensure all possibilities have been taken into account and that both parties receive a settlement that works best moving forward.
Source: nt.gmnews.com, “A house divided“, Erik J. Martin, Jan. 8, 2015