Paying for Your Mortgage After the Divorce is Filed

After your divorce is filed, it’s important to ask which party is going to pay for your mortgage after the divorce.

In Suffolk County, the Judges follow what has been called the “Goldman Rule”.  This is after an Appellate Case that stated this rule.  The rule states as follows: after a divorce is filed, if one party pays 100% of the mortgage principal, real estate taxes and homeowner’s insurance, that party is entitled to a credit for the other party’s failure to pay their 50% share.

This is how it works:  Let’s assume that the mortgage principal, real estate taxes and homeowner’s insurance payments are $3,000.00 per month in total.  If, after the divorce is started, one spouse pays that $3,000.00 each month for one year (for a total of $36,000.00), they would get a credit of $18,000.00.  Compare this to the situation where both parties paid 50% of that amount (that is each party paid $1,500 per month).  In that situation, both parties get an equal credit (which essentially negates the credit).

There are also situations where one party pays 100% of the mortgage principal and the other party pays either 100% of the real estate taxes and homeowner’s insurance or pays 50% of those payments.  Here, the party paying 100% of the mortgage principal is entitled to a 50% credit of the total amount of those payments.  The other party would be entitled to a 50% credit of the payments towards the real estate taxes and homeowner’s insurance.  Typically, mortgage principal payments are much larger than the real estate taxes and homeowner’s insurance, so a net credit would go that party.

It is very important to note that not all Courts follow the Goldman Rule.  Currently, virtually every Judge in Suffolk County follows this rule.  However, in other Counties, not every Judge follows this rule.  Regardless, if your case is in a different County, your attorney should argue that the Goldman Rule does apply.

If you are considering getting a divorce, then it is important to know how the mortgage principal, real estate taxes and homeowner’s insurance is being paid.  David Badanes, Esq. and the Badanes Law Office, P.C. make sure you know what the law states.  If you are thinking of getting divorced, call David Badanes and the Badanes Law Office today at 631-239-1702, email at david@dbnylaw.com or visit our web site: www.dbnylaw.com.  The Badanes Law Office has offices in Northport, Suffolk County and in Uniondale, Nassau County.

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