How Divorce Affects Joint Ownership of Assets

 Posted on August 04, 2013 in Division of Property

Family law attorneys work hard to be advocates for their clients. Their true value lies not only in their legal expertise and experience, but also in their ability to think clearly in an emotionally charged situation, when clear thinking is crucial. Even in uncontested divorces, it is important to have a Kane County family law attorney who can identify and resolve complex issues. In cases where there is joint ownership of tangible assets, divorce attorneys can ensure proper division of those assets and execution of the required legal forms. For example, if a couple owns a home jointly and the home still has a mortgage on it, they may agree that one spouse will take over ownership and make mortgage payments. If this is not done correctly, however, it is a formula for disaster. Even though now one party has legal title, both parties are still on the hook for the mortgage; banks do not care that there was a divorce, and they will not agree to remove spouses from mortgages just because they no longer live in or own the property. In these cases, an experienced divorce attorney will ensure that any property division contains a clause that requires the spouse who takes over the property to refinance it under only one name. Otherwise, one may be on the hook for a property in which they no longer live. If it sounds like speculation, it is not. Divorce law is full of cases where one party took possession of the home, but could not keep up with the payments or secure financing, causing the bank to foreclose on the home. In these cases, both parties would be part of the foreclosure proceedings, meaning that both credit scores would suffer and both parties would be responsible for any deficiency judgments. Parties can avoid these issues with proper legal representation. We cannot foresee everything, but an experienced Kane County family law attorney can go a long way towards planning for them.