It is natural for people who are in the middle of a divorce to seek a rapid end to the process. After all, divorce can naturally take an emotional and financial toll on a person in Virginia. Unfortunately, in some cases, matters related to property division that aren’t handled properly during a divorce can affect a person long after the divorce has been finalized.
For instance, a person who has just gotten divorced may be attempting to buy a new home. If the marital home he or she once shared with an ex-spouse was awarded to that ex in the divorce decree, the person might feel confident about easily claiming the new house. However, a problem may arise if the ex-spouse cannot qualify for a totally new mortgage in order to refinance the other party off of the existing mortgage.
Even though a person may no longer be responsible for a previous house, according to a divorce decree, the individual’s credit report might still show that the mortgage is in his or her name. A mortgage lender will view this liability as a joint one, and thus may not grant the person a new mortgage. Unfortunately, a person's credit score and credit history is directly impacted by his or her ex's ability to keep up with each mortgage payment on their joint credit accounts.
An individual can get rid of his or her responsibility for a previous home in such a situation only if one's ex sells the house. As soon as the person's name is off the mortgage, this omits the mortgage liability from his or her ratio of debt to income on a new home purchase, thus making the home purchase more possible. Going through a divorce involving property division can be complicated, but an applied understanding of the law might help a person in Virginia to fight for a settlement that will end up helping him or her financially in the months and years ahead.
Source: Fox Business, "How to Divide Your House in a Divorce", , July 14, 2014