Property division tends to be a major subject in divorce. Often, Alabama spouses may find themselves wondering who gets to keep certain assets and what their liabilities are as they begin the divorce process. There are ways spouses can handle liabilities during property division to avoid future pitfalls.
One situation is if the spouses are still legally married and one spouse attempts to buy a home. This can become problematic if the spouses are still legally joined together and will require the other spouse to release their interest in that property. The other spouse can sign a quit claim deed which release them from any claims to the property. Another situation is a spouse who wants to buy another home, but is still tied up with property that was awarded to the other spouse.
Even though the divorce decree awarded the other spouse the home, they may not qualify on their own for a mortgage to get the buying spouse’s name off the house. This is also problematic since lenders view this as an item hat has not been paid off. A way out of this situation is for the other spouse to eliminate the buying spouse’s responsibility and either sell the home or refinance it. This can also positively reflect the debt-to-income ratio on credit reports.
Being tied up with the other spouse for any kind of liability can bring on some complications. This is especially true when one of the spouses wishes to purchase a home. Alabama spouses may avoid these complications or at least reduce them by exploring their legal options regarding property division. This can increase the odds of preserving their assets and decreasing their liabilities.
Source: Fox Business, “How to Divide Your House in a Divorce”, , July 14, 2014