A divorce often begins with one spouse moving out of a couple’s shared marital residence. If he or she intends on gaining custody of the children, property division may require discussing ownership of the family’s home. To keep a house, the spouse wishing to continue living in it may need to refinance the mortgage in his or her name.
As noted by Bankrate, a lender may consider an individual’s credit score and income to determine his or her ability to continue payments. When filling out a new mortgage application, monthly income may include court-awarded financial support. If the court order shows a schedule for receiving regular spousal or child support payments, it may help a lender determine how much an individual may afford.
Purchasing a house from a soon-to-be ex-spouse
Florida’s divorce laws require assets acquired during a marriage to divide fairly between two spouses. If a property has substantial equity value, one spouse may use it to buy out the other spouse’s fair share.
When the custodial parent needs to buy the house to continue residing in it with the children, the home’s equity may provide funding for a down payment. Refinancing or applying for a new mortgage using a home’s equity may generate sufficient cash to take ownership of the house from an ex-spouse.
Creating a shared residence schedule
Some couples with a shared or joint custody arrangement may find it convenient to continue owning the house together. As reported by U.S. News and World Report, agreeing on a “nesting” schedule allows each spouse to take turns living in the house with their kids. Individuals who travel for work or who do not plan to remarry may find nesting serves as a workable short-term arrangement during a divorce.