What happens to a marital home is one of many questions that will need to be answered as part of the property division process. In some cases, it may be in your best interest to assume the loan on the New Jersey property. However, there are several issues to consider before deciding if you can do so.
Can the loan be assumed?
The majority of home loans that were created after 2008 do not come with an assumption clause. This means that you wouldn’t have the ability to take over the loan after your divorce becomes official. You can determine whether your loan has such a clause by reading the documents that were signed when the transaction closed. If you don’t have a copy of those documents, your lender may be able to tell you if your mortgage can be assumed.
Can you afford to keep the home?
Just because you have the option to keep the home as part of a property division settlement doesn’t mean that it is a good idea to do so. You will still have to pay the remainder of the mortgage balance, and it’s important to keep in mind that it can cost thousands of dollars a year to maintain a home. Furthermore, the company that services the loan will want to make sure that you qualify to take on the mortgage by yourself. Therefore, there is no guarantee that you’ll be able to keep the home even if you want to.
Ideally, your goal will be to negotiate a divorce settlement that a court would deem to be fair for all parties. In some cases, this may mean keeping the house, but it’s possible that selling it would enable you to maximize the value of your settlement package.