Are you and your spouse going to get divorced? If so, you need to divide assets, and that includes a home that you purchased together. What many couples will do is divide up the money after selling the house on the open market.
But you may not be interested in selling because you don’t want to lose your house and you’d rather take over as the sole owner. You may be able to trade other assets to your spouse, such as giving them control of your investments in order to take 100% ownership of the house. In other words, you do not have to sell it in order to fulfill the property division requirements.
Refinancing may be necessary
If you do this, it is likely necessary for you to refinance your mortgage. This way, you are the only one who is on the loan and who is obligated to make those payments. You are also the only person on the home’s title, so you know you’re truly the sole owner.
Some couples are tempted to skip this step. For instance, if you didn’t refinance the loan, you may simply assure your ex that you will continue to make the mortgage payments on time. But the problem is that your ex would still be liable for missed payments in the future. Refinancing the loan is the only way to truly alter the situation so that only you are responsible for the mortgage payments.
Dividing assets can be complex during a divorce. Take the time to carefully consider your legal options, especially when looking at major assets like a family home or business.