As you and your spouse, go through a divorce and begin dividing property, you realize that you want to keep the family home. You plan to live there even after the divorce.
In order to get it, you simply propose to your ex that they can keep other assets. You may have an investment portfolio that has a similar value to your house. The two of you were supposed to split both, as you were co-owners. But you could ask your ex if they simply want to take the full value of the investments and you will take the full value of the house.
But even if they agree to this, you may still need to refinance the mortgage. Why do you have to refinance if your spouse has already given up their ownership?
They may still be liable for payments
Even if they have agreed to trade ownership to you, your ex is still liable for mortgage payments as long as they are on paperwork with your mortgage lender. That obligation doesn’t disappear just because you got divorced.
Now, you may assure your ex that you will make all future mortgage payments, that the house fits your budget and that it won’t be a problem. But if you ever miss a payment in the future, then your ex may be responsible for covering it, even if it happens long after the end of your marriage. Your ex is unlikely to want this liability, which is why they will ask you to refinance if you are going to keep the house.
Deciding what to do with real estate and other expensive assets can be complicated during a divorce. This shows why you need to carefully look into all of your legal options and be sure you understand what obligations you have.