Dividing Debt in Georgia Divorces
During your divorce, your marital debts will be subject to equitable division between you and your soon-to-be-ex-partner. Marital debt includes any debts that were accumulated during the marriage. Thus, if you and your partner entered into the mortgage after your marriage, the mortgage is subject to division.
However, even if one party keep the house and mortgage, both parties will be legally liable for the debt. If you have a joint mortgage, you and your partner’s name are on the mortgage agreement, and regardless of your debt division agreement, both parties’ credit scores and histories will be affected by the debt.
The party who is not liable for the debt (based on your property and debt division agreement) may worry about the other party defaulting on the loan and wish to remove their name from the mortgage agreement. We will discuss ways in which you can remove yourself from being liable in further detail later.
Does a Divorce Decree Void a Mortgage Lender Contract?
While your divorce decree does assign responsibility to a certain party based, the divorce decree does not null and void any mortgage agreements. Even after a debt division settlement is determined, you can still be held liable by your lender contract, and your credit score can be impacted if the other party misses payments or defaults on your joint mortgage if you do not remove your name.
How to Remove Either Party’s Name from Your Mortgage Loan
Your mortgage lender likely gave you the loan because both parties were named on the loan application and removing a party from the mortgage isn’t always easy. If you want to keep the shared property, you will need to refinance the mortgage and only include the liable party in these documents.
Other options include selling the property and getting a clean start for both parties or creating a new repayment plan to pay down the debt more quickly. You may choose these options because of the risks of missed payment and liability that we have mentioned.
Contact Our Experienced Attorneys
If you or a loved one are going through a divorce and have a mortgage, the attorneys at Balbo & Gregg, Attorneys at Law, PC can help you understand your options, protect your interests, and make informed decisions throughout the process. Property and debt division can be complex, and our firm can help you determine the best way forward whatever your circumstances.
With decades of combined experience, our divorce attorneys are also able to help our clients achieve the best possible results in their cases, and our clients are our top priority. We handle a variety of divorce-related matters, including:
- Child custody/visitation
- Child support
- Spousal support
- Domestic violence (i.e. restraining orders)
- Paternity disputes
- Separation
- Property division
To learn more about our service or schedule a free consultation, contact our firm online or via phone (866) 580-3089 today.