Husband and wife of 15+ years are divorcing. They own a home together with a mortgage payoff that is slightly more than what the house would sell for. So, wife decides to keep the house and husband agrees. Question: if wife is keeping the house, the debt associated with the house will follow her, correct? She will have to refinance without the husband, and assume a mortgage that is slightly higher than the house is worth... correct? Would the husband have to pay the wife anything for the house since wife is keeping the asset? Or does the debt stay with the asset, and if an agreement can’t be made then the house would have to be sold (and both parties would have to split the deficit)?
1 Answer from Attorneys
The debt may be her responsibility, but you are still on the note and still liable to the bank. If she refinances, then she would only be responsible for the debt. Who pays whom is always a subject of negotiation and depends on wmat other marital assets are involved and who is getting those assets.