In terms of division of assets, divorce is no longer what it used to be. Until the last few years, spouses would argue and fight in court in an attempt to secure ownership of the marital home. This was because the home represented a large part of a family’s net worth. However, since the housing crash in 2008, couples seeking divorce are no longer fighting over ownership of the marital home. This is because most homes that were purchased in the last few years have shed the majority of their value. But, what is not diminished is the money that is owed on the home. Unfortunately, just because your home goes down in value, it doesn’t mean that what you owe the bank is reduced as well. In short, there is no correlation between home value and reduction of existing debt to the mortgage holder.
Another area dangerous area that pro se couples don’t realize is the following: For example, if the couple decides the husband is to retain the marital home, but both the husband and wife signed the promissory note, the wife is still liable to the bank. Even If the wife is no longer on the deed, it doesn’t mean she is not still liable to the bank is the husband stops paying. So, if the husband stopped paying the mortgage, the bank could sue the wife in foreclosure. The wife would be responsible for a deficiency judgment even if she agreed to award the home to her husband. If you are contemplating divorce and have questions, be careful about proceeding on your own. Please call the lawyers at Hutchison & Tubiana.
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