Property division may not be the first thing on the minds of El Paso homeowners planning a divorce, but it is important to understand the various issues that can arise. Residential properties are often the last remaining financial ties between divorcees, and the issue becomes even more complicated when it comes to determining who will continue to live in the home. Some couples choose to sell the marital property and divide the proceeds, while others choose to remain together in the same house until the mortgage is paid off.
Continued cohabitation after divorce may seem controversial, but many couples choose this option both for the benefit of their children and for financial practicality. Another option is to remove one spouse's name from the mortgage by refinancing the property. The refinancing process can be difficult as it involves applying for a loan as a single person with a single stream of income. Accordingly, interest rates may be higher than the one offered to the couple when they applied jointly for a mortgage.
Divorcees who plan to remain on the mortgage should be aware that lenders consider their ability to repay the mortgage based on the applicant's lone income. While alimony and other support payments are taken into consideration, many individuals find that they take a financial hit after refinancing. Once the refinancing process is finished, the divorcee can move on as the sole homeowner.
The end of a marriage can be both contentious and emotional, and the division of community property can often be one of the more complex issues. In some cases, the couple's respective family law attorneys can assist their clients in negotiating a settlement that may be more appropriate than if it were left up to the court.