When you get divorced, one of the most significant decisions you have to make is what to do with your house. Keep it, or sell it? Give it back to your ex? Like some couples, you might refinish your mortgage. But that can be a tricky process. That’s especially the case if you need to become more familiar with the divorce laws in North Carolina.

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The division of property is one of the essential aspects of a divorce in North Carolina. Not only are both spouses not allowed to keep their homes. There are several options available for them to decide how to divide assets. This division could be between themselves and some outside party. The party must help oversee fair shares based on the agreement.

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Mortgages and divorce can be a tricky combination. Knowing the ins and outs of both topics is essential before making any decisions. So before you start packing boxes, make sure you read this post. Also, get some advice from a local real estate expert like me, Nancy Braun of Showcase Realty.

Should Both Spouses Be on House Title in Charlotte, NC?

The first question you need to answer is whether or not both spouses should be on the house title. In many cases, only one spouse should keep the house, and the other should take off the mortgage. But there are a few things you need to consider before making this decision.

If you’re planning on selling the house, you’ll need both spouses to sign off on the sale. Suppose only one spouse is on the title. The other spouse can technically object to the sale and block it from happening.

If you’re planning on keeping the house, make sure you can afford the mortgage payments on your own. Meanwhile, suppose both spouses are on the mortgage. Then the lender can come after both of you for the expenses if one of you falls behind.

There are a few other things to consider, but these are the two most significant factors. It’s still up to you and your spouse to decide what’s best for your situation. Mastering home pricing: get the price you want! https://showcaserealty.net/pricing-your-home/

Who Gets the House in a Divorce in North Carolina?

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In North Carolina, the court will divide property in a divorce based on what is fair and equitable. That means that the court will look at the case’s circumstances. After which, they will decide the best way to divide the property between the two spouses.

The court will consider several factors when making this decision, including the following:

  • income and earning potential of each spouse
  • age and health of each spouse
  • contributions of each spouse to the marriage
  • needs of each spouse
  • custody arrangement for any children of the marriage

The law requires spouses receive half of their partner’s estate in North Carolina. Ultimately, the court will make a decision based on what is fair under all of the circumstances. Are you getting divorced? Then make sure you talk to a local divorce attorney to get an idea of how the property will be divided up.

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What Happens if You Get Divorced With a Mortgage?

Let’s face it, life is tough. That’s why we want to ensure you and your significant other are taken care of when taking out a mortgage! Suppose two people take on the responsibility for their loans. In most cases, they become more invested in each other’s success. So if one person can’t keep up with payments, both will suffer instead of just bearing those costs alone.

Meanwhile, suppose a couple is getting divorced. In support of this, one of the partners has responsibility for paying off their mortgage. It doesn’t necessarily mean they’ll be able to take this agreement in stride. Both parties might agree on these terms during legal proceedings. They might not even involve any third party like banks. Or perhaps even lending institutions are not affected. Regardless of these cases, joint responsibility lives large!

In the eyes of any future lender, the mortgage will still be seen as a shared responsibility. It’s still between both parties on the divorce decree. So even if one person makes all the payments, the other’s credit will still be affected if they fall behind.

It’s essential to keep this in mind when getting divorced. In addition, it should be taken into account considering your options for the future. You’ll need to sit down with your ex and figure out a plan that works for both of you. Doing so can avoid any financial difficulties down the road. Not happy with your home? we’ll sell it for free! Click here.

How Do You Take Over a Mortgage in a Divorce?

Are you sure that the divorce is final? If so, it’s time to take care of all those pesky property division issues. Looking over paperwork, related parties may need to transfer ownership of that home. Doing so is crucial before settling on an agreement with your former spouse. This is especially true if they had paid for the mortgage while you’re married.

Do you know what the easiest way to settle your housing issue is? It’s by transferring the existing mortgage. Usually, lenders want copies of divorce papers and an adequately executed quitclaim deed. When you provide them with these things, they will approve this transaction. 

If you take over the mortgage, make sure you can afford the payments. You must also ensure your ex understands the terms of an assumption and what will happen if things go wrong. Doing so could release you from liability. You could also have less opportunity for leverage in disputes with them later on down the line.

In some instances, the spouse quitting interest in a home could still be liable. This is especially true if that person makes late payments or defaults on their mortgage. Lenders then need to give liability releases so they don’t have risk-averse credit due. 

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How to Get Rid of the Mortgage Payment in a Divorce

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To get rid of the mortgage payment, your non-occupying spouse must be removed from making it. They must also be removed from having that active account on their credit report.  

In some cases, it might be possible to have your ex-spouse off the mortgage by refinancing. This will depend on how much they are paying down now. It will also depend if other financial obligations need to be fulfilled for eligibility.

In the instance of a divorce, one can make a petition. In particular, they can petition their mortgage company for release from responsibility. To do so, they will need proof that shows who is responsible. They should also prove who can, at this time, move forward with making payments on the house. Such conditions must be met despite any circumstances that might be present beforehand.

The lender may request these documents clearly outlining each person’s duty. They might also outline as well as one’s willingness towards fulfilling it.

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Final Thoughts

Divorce is never easy, but it doesn’t have to be complicated. With some knowledge, you can ensure you come out of the process with what you need. So if you’re getting divorced in Charlotte, NC, know your rights in mortgages and divorce. 

I, Nancy Braun, am a Charlotte, NC real estate expert and the founder of https://showcaserealty.net/. I have over 10 years of experience helping people buy and sell homes in the area.

Are you considering a divorce and have questions about what to do with your mortgage? Contact me for help or click here! I can answer your questions and help you determine the best action for your situation.


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