Many Utah residents grow attached to their houses for various reasons. As a result, it can be difficult to let go of that property during the asset division that occurs as part of a divorce. Depending on who wants to keep the home and other factors, parties may be able to negotiate to reach the outcomes they desire. However, before taking on the home as a single person, an individual will want to make sure he or she can handle the mortgage payments.
Because most people pay on their mortgage loans for many years, it is likely that payments are still needed even after a divorce. If the former couple took out a joint mortgage loan so that they could both handle the payments, it is likely that both parties will not want to keep up that loan after divorce. This means that the person keeping the home will need to handle the mortgage payments on his or her own.
The individual could choose to refinance the loan or to assume the current loan if keeping the joint mortgage is not an option. Assuming the loan can be beneficial in many cases because it could allow a person to keep the current loan terms, which may be favorable. However, assuming a loan is not always allowed by lenders, and it is not always the best option, especially if refinancing could result in similar or better terms. Individuals looking to keep their homes after divorce will likely benefit from exploring their mortgage options and their personal finances.
Understandably, the sentimental attachment to a home can drive the desire of many Utah residents to keep the property. However, it may not always be the best possible outcome. It may prove wise for individuals to consider the overall effects of asset division on their finances and their futures to determine the best property division goals.
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