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Navigating Mortgages During Separation or Divorce: Key Considerations
September 27, 2023 | Posted by: Angela Robinson
Going through a separation or divorce is undoubtedly challenging, and it can have significant implications for your financial future, especially when it comes to mortgages. Here are some crucial considerations to keep in mind during this process:
- Mortgage Obligations: Typically, both parties are responsible for the mortgage. It's essential to discuss how you'll handle the mortgage payments and whether one party will remain in the home or if it will be sold.
- Refinancing: Managing expectations when it comes to staying in the current matrimonial home is vital. Usually, it requires both parties on the application to qualify for the mortgage. On separation, one party may not have sufficient financial resources to remain in the home.
- Separation and/or Divorce Agreement: An agreement will be required to take over the existing property or purchase a new home.
- Legal Assistance: Seek expert legal advice as early as possible and manage expectations regarding the timeframe for asset separation and the process for both parties to move on.
- Spousal or Child Support: Understand that spousal or child support will have a significant impact on both the party paying and receiving support, which can affect your mortgage affordability.
- Credit Implications: Late or missed mortgage payments can harm your credit. Addressing how mortgage payments will be made during the separation is crucial to protect your creditworthiness.
- Mortgage Professional Advice: Consult with a mortgage professional specializing in divorce-related mortgage issues. They can provide guidance tailored to your unique situation and help you make informed decisions. There are special mortgage programs to assist those going through marital split.
Remember, every divorce is unique, and there is no one-size-fits-all solution. Take the time to understand your options, seek expert advice, and prioritize your financial stability as you navigate this challenging transition.
Contact us today at 780 701 3888 or marc@albertamortgagepros.ca
