Financial Mistakes Divorce Mediation Couples often make and how to avoid them.
One such mistake when it comes to divorce and finance is failure to maintain your financial obligation associated with real estate mortgages and other joint debts. Leaving the marital residence before or during the divorce does not constitute a legal abandonment of your property interest in the home. However, you must ensure that all financial obligations associated with maintaining the property, namely, mortgage, taxes, and insurance, are fulfilled. Similarly, when deciding to retain the marital home consequent to a divorce, you should make a well-informed decision based on the realities of your budget after divorce.
The Marital Residence
The home where both spouses lived before a divorce is often referred to as the Marital Residence. It’s often a very emotional decision to keep the family home, especially when children are involved. Like all property acquired during the marriage, both parties have an interest in the real estate, regardless of how the property was acquired or who is (or is not) on the Title.
Leaving the marital residence before or during the divorce does not constitute a legal abandonment of the property interest in the home. Couples often separate geographically during or before a divorce; however, the real estate investment remains a joint legal obligation as well as an asset. Continuing to pay the mortgage (or share it according to your agreement with your spouse) ensures this investment is protected, and the departing spouse remains an “interested” party.
Divorce, Finances and the Dissolution Process
During the dissolution process, your attorney-mediator will guide you through the correct and proper ways to sever the two legal relationships associated with the real-estate asset, specifically the Title, and Debt. A divorce mediation attorney with a primary focus or expertise in family law can avoid costly mistakes.
For some spouses, while it would be nice to remain where you’re comfortable and avoid the hassles of moving, staying in the marital home might not be the best financial decision. No matter how attached we are to our current house, it is essential to have a realistic sense of one’s budget and affordability. A home, after all, is where you will be most comfortable emotionally and financially.
To learn more about how divorce mediation can help your case, contact any of our Divorce Attorney Mediators or Certified Divorce Financial Analysts at CT Divorce Mediation Centers. Divorce and Family Mediation and Collaborative Law are all we do. We have offices in Madison, New Haven, Cheshire, West Hartford, Glastonbury, West Hartford, and Windsor, CT. To find out more information or to schedule a consultation with our divorce experts, call us at (860) 986-1141.
DISCLAIMER:This publication is not meant to constitute legal, accounting, financial, investment advisory, or other professional advice. If legal, financial, investment advisory or other professional assistance is required, the services of a competent professional person such as CT Divorce Mediation center, should be sought.