Virginia couples may face a difficult decision about how to deal with the family home during a divorce. The family home can come with a significant amount of emotional baggage, especially if children are involved and feel an attachment to the house and their community. There are also major financial costs involved, especially because the marital home is often one of the largest assets divided in the divorce. This is particularly true if the couple have accumulated a large amount of equity in the home.
In some cases, divorcing spouses may decide to sell off the home, pay outstanding debts and divide the proceeds equitably as part of the property division process. This can be one way of avoiding one spouse holding a home that they are unable to afford on one income. When neither spouse is emotionally attached, this can be a smart financial decision. However, many people feel very strongly about the marital home and one spouse may want to keep it. In most cases, that spouse will need not only to buy out the other spouse but also to refinance or assume the mortgage in his or her name alone.
Some people have a mortgage that allows for loan assumption, which means that the original terms and interest rate are kept intact even when the person responsible for payments has changed. This process can be cheaper and more favorable than traditional refinancing. However, only some loans allow for assumption, and the spouse taking over will still need to prove creditworthiness and sufficient income for the loan.
The family home can be one of the most difficult emotional and financial issues handled in a divorce. A family law attorney can help a divorcing spouse to seek a fair settlement on all divorce legal matters, including spousal support and property division.