It's a sad fact, the beleaguered economy is taking a toll on many relationships. The stresses of diminished income, lost employment, rising prices, and decreased housing values have broken many american couples apart.
Divorce is a very difficult time for parting couples in many ways. Emotionally and monetarily it leaves no stone unturned. It's probably the worst time to expect someone to make important financial decisions, but many times it is exactly during this time of upheaval that settlement of homeownership must be made.
Divorcing couples must always remember one thing. Marriage and its' dissolution remains a business deal. It sounds cold to categorize it as such, but steps must be taken to insure that a fair and equitable ending is reached financially. That way both parties involved can move into their future satisfied and prepared monetarily.
As hard as it may seem, regaining control of your life is possible. By taking small careful steps and seeking advisors that will guide and assist you in making wise choices, you can lay the groundwork for a healthy financial future. Creating a "team" of advisors, one that includes a trustworthy and knowledgeable banking professional,
should be the first crucial step taken towards finding the peace of mind you so richly deserve and so greatly need. This is especially true if their is a marital home involved.
Here are some questions and guidelines to consider if you are involved in the dissolution of your marriage:
- Settle the agreement regarding the marital home, i.e. ... Do we sell the property or will one party remain in the home?
- If retaining the marital property, a quit-claim deed must be prepared by legal counsel transferring the title and rights to the property to the remaining spouse.
- If there is outstanding debt on the marital property, the remaining or residing-party must refinance to his/her name only, allowing the exiting spouse to be relinquished of the mortgage debt.
- Any joint debt or assets to be split must be evidenced in the Divorce Decree and the creditors advised in writing of the removal of one of the parties to affect the Credit Report property.
- Consult your attorney and professional mortgage banker/advisor before taking any actions, such as listing the property or buying another property.
If you have 
any questions regarding the status of your loan and its payments during the divorce proceedings, do not hesitate to contact or question your lender regarding your concerns. Divorce can affect your credit, so make sure you cancel all joint accounts held with your spouse. After the divorce is final, it's also very wise to re-check your credit report. That way you make sure all issues are in order. Please remember, most mortgage counselors/lenders are happy to perform this credit check free or at a reduced cost.
When a marriage ends, it is a disquieting time emotionally. Protect your finances by getting the professional guidance and assistance you need. You will be glad that you did for the rest of your life.
Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp
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