During a Minnesota divorce, a former couple will have to divide up any property they obtained during their marriage. For many, this means making decisions about the family home. One person often wants to retain ownership, especially if there are kids involved. However, simply choosing to keep the home may not be as simple of a decision once the financial reality sets in.
While the decision to attempt to retain ownership of the family home is often made due to emotional reasons, it may not be the best one when it comes to finances. The divorce process can have a major impact on a person’s ability to afford the family home on his or her own. Even further, if there is still a mortgage on the home, the person retaining ownership will likely have to refinance to get the other party off the loan.
Those who try to refinance the family home will have a number of hurdles they will have to go through. If a person did not earn an income during the marriage, he or she may not be able to refinance until a certain number of alimony paymentss have been made. Further, those going through a divorce also find that their credit score has been impacted due to missing bills, which can prevent them from securing a new mortgage.
While there are some financial hurdles to overcome, retaining ownership of the home can minimize the impact of a divorce on both a parent and the children. However, if the other person will be paying alimony and child support, keeping the home may be an obtainable goal during the property division aspect of the divorce. A family law attorney can often help to negotiate a settlement agreement that accomplishes this.