It may be a good idea for Florida residents and other individuals who are getting a divorce to either sell their homes or refinance their mortgages. Failing to account for a mortgage in a divorce may hurt a person’s credit score. A lender doesn’t care if a marriage has ended when it comes to getting the money it is owed. A lender can still come after a person listed on a loan until it is paid off or refinanced.
Refinancing a mortgage may provide flexibility as it relates to a person’s finances. For instance, it may make it possible to convert a loan with an adjustable rate to one with a fixed rate. This may be advantageous because interest rates can rise in the future. Cashing out equity also may make it easier to pay bills or consolidate debt at a lower interest rate.
Refinancing a mortgage may make it possible to reduce the interest paid on the loan. In turn, that may reduce the amount that is paid each month. Ultimately, this generally means more money is available to pay bills or handle other expenses. In the aftermath of a divorce, it is critical that a person has as much flexibility as possible to support him or herself as well as take care of other obligations.
Those who are going through a divorce may want to go to a Venice, Florida, property division law firm and speak with an attorney about creating a favorable settlement. A lawyer may talk more about the property division process as well as review any prenuptial or other property division agreements that may exist. If a prenuptial agreement is valid, it generally dictates how property is divided. However, if it is not valid, it may be necessary to engage in mediation or litigation to help resolve the issue.