PLEASE NOTE:

This article is for information only and it is not intended to replace legal advice. We strongly recommended you seek professional legal counsel for your legal issues.
Avoid costly mistakes...

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I don’t like writing about negative things, but the reality is that today divorce is common-place due to various factors including pressure and financial strain.  When the decision is made to separate a marriage is normally a very hard and difficult time. An unfortunate aspect of a divorce is the splitting of your combined assets. This includes your home.

By getting impartial information on options about your home it will make vital decisions during this stressful time easier.

The first step is that you must to decide who, if anyone, wants to live in the house. Many times neither party wishes to stay in the home due unpleasant memories. Other times, there may not be any choice on which party will stay at the house.

I’ve written this article to help you understand what your decision will mean to you financially and where you will live.

Can you afford to move? Will you have to refinance? If you do move what can you afford?

Home Loans & Divorce: 4 CHOICES

Here are your 4 fundamental choices on what to do with your property

1. Sell the house. Split the profits
2. Buy the house from your spouse.
3. Sell your part of the house to your spouse.
4. Have a joint ownership.
It is critical to know what these 4 choices mean

1. Sell the House Now and Split the Profits.

Your primary goal in this situation is to take advantage of your home's resale price.  Consider your net profits carefully, e.g., your profit after selling costs.  Keep in mind that in the end the profits may not be equally divided. 

Factors that may influence the split include the terms of your settlement, the original source of the deposit, and the property laws in your area.

2. Buying out your spouse.

Think about the new income of your household.  Are you reducing from two salaries to one?  Are you able to afford the monthly home loan payment?  If you wish to keep the house as your primary residence, these factors must be addressed. 

If the original home loan was qualified with dual incomes, then you may face challenges refinancing on your own.

3. Being bought out by your spouse.

One important caution, however:  unless your existing home loan is refinanced, you will be considered liable for the home loan, unless it has been taken off your name. 

This may pose a barrier in your eligibility for a new loan if you decide to make another major purchase, such as a new home.

4.  You and your spouse retain joint ownership.

This is if you choose to delay the decision regarding possession of the home for a time, with one or the other of you remaining as a resident.  This poses no short-term financial worries; however, be conscious of the implications of future purchases etc.

IF YOU DECIDE TO SELL

Should you decide to put your home up for sale, an experienced estate agent can be invaluable in helping your maximize your profit.  Input from both spouses is essential, regardless of differences, and they should both be represented when an agreement is drawn up. 

Also, all parties should read and sign the agreement, and continue to be participatve in the negotiation process.

YOUR NEXT HOME PURCHACE

In this situation also a seasoned estate agent can be invaluable in helping to sort out your needs.  For example, what price range is reasonable based on the profits from your home sale?  What are your new space, use and location needs?  Keep your first priority of getting what you NEED and WANT to suit your new situation.

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I offer more than simply a home loan, I'll personally advise you on how to use and apply the principles contained in this article.  I am a certified Estate Agents Affairs Board (EAAB) individual, so I am very knowledgeable of all parts of a real estate transaction. 

Worried that you can't remember all of what is contained here?  Call me and I'll review your sales agreement before it is presented to the seller.  I want to earn your business.

If you have any other questions or information you need about home loans, don’t hesitate to contact Zulika at :  http://www.gpfmortgage.co.za