What happens to the mortgage on your home (or other real property) in a New York Divorce? There are a few possible answers to that question.
Possibility No. 1: Nothing – although relatively rare, the mortgage can remain the same, with no changes. However, even here, the fact that “nothing” is changing would still require appropriate language in the divorce settlement agreement to reflect this fact.
Possibility No. 2: Paid off by one or both parties: this is typically what occurs. Either one party pays off the mortgage or the real property (house) is sold and the mortgage is paid off by the sale of the house.
Possibility No. 3: Assumed by one of the parties: Here, one of the parties “assumes” the mortgage and takes over paying the entire mortgage.
If there is a mortgage on your marital home, then how that mortgage will be paid is just one of many questions that have to be answered in your divorce.
David Badanes, Esq. and the Badanes Law Office, P.C. have drafted numerous divorce agreements that arrange for how a mortgage is handled after a divorce.
The Badanes Law Office has offices in Northport, Suffolk County and in Uniondale, Nassau County.
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